The entrepreneurship and small business phenomenon is one of the most relevant political, economic, social, and media-covered topics. The main goal of every entrepreneur is to make a profit. In order to achieve this goal, entrepreneurs organize their business and take financial actions, but often take risks as well. Individuals and institutions could enhance entrepreneurial activities by providing support and showing an understanding for new ideas and creativity. The development of entrepreneurship and small businesses is one of the crucial factors in creating competitive advantages of the national economy. In developed market economies, the general rule is that incentives for entrepreneurs and small businesses, as drivers of development and employment, are needed in order to enable the realization and continuous formation of new economic entities, all with the application of new knowledge and new technologies. The main goal of this paper is to present the state of entrepreneurship in the Republic of Croatia, more precisely, entrepreneurs' sources of funding. Based on the research in this paper, it was found that there are many opportunities to enter entrepreneurship, but that taking the initiative requires continuous empowerment and desire.