This paper addresses entrepreneurship-related topics and is focused primarily on microentrepreneurship. It is of great importance to note that according to the Accounting Act which comes into effect on January 1st of 2016 as a result of the new European directive, many novelties occurred. One of the novelties is the new classification of entrepreneurs, with the introduction of a new category - micro-entrepreneurs. Entrepreneurs are classified according to the indicators (total assets, income and an average number of employees) determined on the last day of the business year which precedes the year for which the financial statements are prepared. In the following text, we mention the indicators, which an entrepreneur must satisfy 2 out of 3. According to those indicators, entrepreneurs can be: Micro entrepreneurs are those who do not exceed the thresholds of two from three conditions which are: their assets must not exceed HRK 2,6 million, income must not be higher than HRK 5,2 million, and the average number of employees during the business years which can't be more than 10. To get a better understanding of this topic, we have mentioned other divisions, highlighted significant sectors of SMEs, and explained individual financial statements that micro-entrepreneurs are required to have. In the first place, the term of the balance sheet and its structure by accounting standards, structure and the term of an account of profit and losses as well as notes with the financial statements that explain all of the above in greater detail.