Strong and innovative entrepreneurship is needed to strengthen the economy of every country. Entrepreneuriship brings to the goal of the country which is manifested in as much as possible competition on the market, creativity and speed to stand out from the others. In order for the economy of each country to develop and maintain this trend successfully, it is important to pay close attention to micro, small, medium or large companies. However, the main holder of the economy in the Republic of Croatia and elsewhere are small business. Their success is made by all employees in the small business sector who, through their knowledge, skills and experience, contribute to their company and also the state in general. In order to maintain the success of an employee, it is establish an appropriate and attractive compensation package that will also encourage employees. An equally important part of this thesis, along with the theoretical part, relates to an empirical study of the features of employee remuneration in small enterprises in the Republic of Croatia. Through the research, data on the essential parts of the total compensation package of employees in small enterprises was collected in order to obtain a clearer and more detailed picture of the state of the remuneration system. Survey data shows that the basic salary of employees is dominantly determined by individual negotiation of employees and directors and that the salary has not changed only once in several years or it has not changed in last five years. Also, research has shown that most small business do not have special fees and no benefits that go beyond the legal framework.