Today management represents the most important function of an enterprise. To respond to all challenges they face in everyday practice, the managers have to be successful in the implementation of all five management functions: planning, organizing, human resources managing, leading and controlling. Each of the said functions has its important role and significance for achieving the concrete goals of the enterprise for the size of a business unit as well as the kind of activity do not diminish the need for carrying out all of the functions of management. The key to the success of management lies in bringing its basic functions into harmony. Entrepreneurship is an essential drive to the economy as a whole, and the investment incentives into innovations, research and development as well as the entrepreneurs are the characteristics of an entrepreneurial society. Such a society enables the development of entrepreneurship and the growth of the economy. In the Republic of Croatia, the entrepreneurship is part of the economy. Small and medium-sized enterprises are potentially the source of creative energy which can contribute to the dynamics of the Croatian economy.