The entrepreneurial environment and the general state of the entrepreneurial activity is reflection of the current state of the economy and all of its aspects in every sense, because if the socio-demographic image of the country is bad, there is also no opportunity and no one who will start the entrepreneurial activity. Currently we are in globalized and highly competitive environment where adjustments are required from hour to hour which is also very difficult if there is no support from the environment or factors that could help that adjustment. This paper will analyze the entrepreneurial environment in the Republic of Croatia through which it also will give a brief critical review on the region of Slavonija and Baranja which includes five counties of Croatia. General state of the economy as one of indirect factors of the entrepreneurial environment have major impact on the entrepreneurship and entrepreneurial activities. Current situation in the Republic of Croatia can be described as very distrustful by entrepreneurs and those who would engage in any kind of entrepreneurial activity in the sense of fear of taking risks and dealing with failure. Entrepreneurial environment significantly affects the development of the economy, is a driver of entrepreneurial activities and it is a key of country's development but also brings benefits to entrepreneurs and entire community. In addition to definition of basic aspects of the entrepreneurship paper will analyze general state of entrepreneurial activities in Republic of Croatia, showing statistics on the number of enterprises, entrepreneurs and other relevant indicators. Attention will be given to the environment and trends in entrepreneurship especially in the region of Slavonija and Baranja and this will lead to a conclusion on further opportunities for future development. Since the implementation of the projects funded by European funds is one of the respected activities today, this paper will also highlight some of the possibilities through which entrepreneurial activities could be financed through European programmes and projects and will briefly describe the purpose of entrepreneurial support institutions and other government and non-governmental organizations and their role in development of entrepreneurship.