One of the essential tasks of every modern democratic state is to create the preconditions for the development of entrepreneurship and to establish a legal framework that will encourage, direct and strengthen entrepreneurial potential within the national economy. The legislative framework that represents the basis for strengthening entrepreneurial activity in the Republic of Croatia consists of the Act on Encouraging the Development of Small Business and the Act on the Improvement of Entrepreneurial Infrastructure. In order to ensure the best possible development of entrepreneurship in their area, local governments must create a stimulating entrepreneurial climate and play the role of partners in relation to entrepreneurs. If public institutions and services and public companies are managed in a quality and transparent manner, a professional, professional and reliable environment will be created within the local community that could give entrepreneurs an additional incentive. The development strategy of the Municipality of Nijemci from 2015 to 2020 is the main tool by which the local self-government unit elaborates in detail the strategic goals in terms of encouraging economic development. Based on the Strategy, the Municipal Council adopted the Program for Stimulating the Development of the Economy of the Municipality of Nijemci for the Period 2019-2020. The above-mentioned Program prioritizes the start-up of small and mediumsized enterprises and the encouragement of entrepreneurial initiative. As a local unit, the Municipality of Nijemci has achieved its role of encouraging entrepreneurship in the past few years by strengthening entrepreneurial initiative and promoting entrepreneurship, educating local entrepreneurs and informing about possible financing and business expansion, co-financing the costs of mandatory contributions to new and existing businesses. intend to perform health care activities, and the construction of three business zones and the construction plan of the Auto Park "Lipovac", which aims to attract new entrepreneurs and investors to the Municipality.