Croatia has a relatively low level of entrepreneurial activity of the population, unlike other countries in transition, more precisely, in Croatia, only every 12th citizen decides to become an entrepreneur. Then, the paper will present a description of the environment for starting and developing a business in Croatia and will state the causes of low entrepreneurial activity. Regarding the low entrepreneurial activity, an insight into the necessary administrative procedures for founding and running a company will be given. On the other hand, a review will be given of the potential that digitalization (global connectivity and networking) brings. Entrepreneurship is the foundation of economic growth and, accordingly, it is necessary to encourage its further development through certain measures and programs. The aim of this final paper is to provide a detailed description of the establishment of a company with an emphasis on the use of grants and an overview of administrative needs. The paper will present a structured offer of all subsidies for entrepreneurs who are just starting a business Grants and incentives through various measures and programs are available on the market in various forms and from various service providers (HBOR, HAMAG BICRO, EU funds, subsidies at the city / municipality / county / state level), it is important to mention incentives for self-employment and grants funds for entrepreneurs. Precisely because of the various conditions for receiving grants and incentives (some combinations of grants and incentives from various service providers are not allowed while some are), many give up the very establishment of a company and starting a business.