Constant economic, market, social and political changes are characteristics of the time in which we live, so every entrepreneur who wants to operate successfully and survive in the market must be ready for change, and adapt to them accordingly. The entire structure of the European Union is organized, among other things, to create conditions in which entrepreneurs will be competitive under the same conditions as others. In order to make it easier to manage entrepreneurship and to keep it afloat in the market, there are numerous investments and resources that contribute to its development. European Union programs and funds serve as a kind of assistance or support for entrepreneurial development. Their purpose and assistance are reflected in financial support, new ideas, entrepreneurship education, encouraging employment in companies and other forms of support. This paper will present the European Structural and Investment Funds and their impact on the economy of the Republic of Croatia, specifically on the development of small and medium enterprises. Since joining the European Union in 2013, but also through pre-accession funds, Croatia has been withdrawing grants from EU funds but also using financial instruments to accelerate its development, reduce regional imbalances and unemployment. Following the global crisis of 2008, small and medium-sized enterprises stagnated, European investment and structural funds enabled them to progress, and this progress also increased the number of employees.