Entrepreneurship is a very complex concept and has a strong impact on the economy and can be found in different types of activities. One of these activities is tourism, which is as entrepreneurship very complex, so the combination of tourism and entrepreneurship encompasses a wide area that can not be easily defined. The aim is to highlight the importance of tourism businesses, especially small businesses as the most common form of entrepreneurship in Croatia. The work consists of five chapters, of which the first chapter is an introduction and a final chapter conclusion. The second chapter covers the definition of basic concepts in entrepreneurship, entrepreneurship division and its main characteristics and economic indicators that impact the national economy as well as the strategy for development of entrepreneurship in Croatia. The third chapter focuses on the role of SMEs in tourism. Here is defined the concept of tourism and its basic characteristics where they extend to the types and forms of tourism, as the concept of tourism development and economic impacts of tourism in Croatia. The chapter is concluded by processing the specifics of tourism businesses and the challenges and constraints that are placed in front of small business owners who perform tourist activities. The fourth chapter is the analysis of SMEs in tourism on the basis of practical examples. There will be analyzed three selected small hotels and based on the appropriate methodology to try to determine the performance of selected hotels in Croatia as well as their importance as small businesses in tourism.