Since the development of small and medium-sized enterprises is one of the key strategic developments in the European Union, and the financial environment in the Republic of Croatia is relatively poor, while banks and savings banks are the dominant financial organizations, it is necessary to use funds whose use is made possible by EU funds or incentives. Small and medium-sized enterprises in the Republic of Croatia and the European Union have a large share in the total number of companies, so the development of small and medium-sized enterprises plays a key role in the development of the economy both in the European Union and the Republic of Croatia. They also play a major role in the development of the economy, so the EU Commission has made a special effort to stimulate the development of small and medium-sized enterprises. European Union funds are the priority of Croatian governments. Through new employment, a competitive economy, a clean environment and economic growth bring benefits to all parts of Croatia, and to Croatia in the 2014.-2020. financial year with over HRK 80 billion available from the European Structural and Investment Funds, the goal is to invest these financial resources into a job that will employ as many Croatian citizens as possible to strengthen the economy, reduce the risk of poverty and achieve even development of all parts of Croatia.