Small businesses represent the development and driving force behind economic development. Small businesses within the meaning of the Small Business Development Promotion Act are entities in entrepreneurship and crafts. Connecting entrepreneurship with economic growth and development over time has become the subject of many scientific and expert researches. The important role of this sector is particularly evident through its share in employment, in total revenue and exports. According to the available data, small and medium enterprises account for 99.7% of the total number of enterprises in the Republic of Croatia. Entrepreneurs and craftsmen should clearly define their goals and choose the right strategy when implementing their venture. In order to investigate what small businesses consider opportunities and what challenges, an empirical analysis was conducted among individuals in the Republic of Croatia. The questionnaires were taken by the respondents online because it was the easiest way to reach the respondents and the data. Respondents were male and female over 18 years of age, with different levels of education and different occupations. Small businesses face a variety of challenges, with the largest being loss of invested capital and bureaucracy. Profit is the main motive for the entrepreneur and in this he sees the greatest opportunity for which he decided to engage in risky entrepreneurial activities. The state, through its policies, measures and incentives, should be a support to entrepreneurs and craftsmen during the realization of the economic enterprise, and should constantly encourage the development of small businesses.