Globalization processes affect all the worlds economies, including the European union's economy and its Internal Market, but also the exchange with foreign markets. In these processes small and medium-sized enterprises are opening up numerous opportunities for joing the International markets. This graduate thesis aims to analyze the development of SME's in the EU under the conditions of globalization. However, there is a fear that globalization processes, accompanied by automation, computerization and robotization, could result in a declane in competitiveness, job losses, and various forms of unfair trading practices. The problem with research stems from an ignorance of the potential effects of globalization. In the paper are determined the key elements of the Internal Market, to analyze entrepreneurship in the EU, to define the key elements of globalization, and to identify the challenges and perspectives of SME's in the context of globalization. The purpose of the research is to determine how globalization affects on the SMEs in the Internal Market. The paper found that globalization strongly influence on the development of small and medium-sized enterprises in almost all the determinants of his development in the EU Internal Market, namely: business entrepreneurial environment, entrepreneurial policy, education, research and development, law and regulation, and macroeconomic trends.