The issues investigated in this paper are all difficulties faced by micro, small and medium IT companies in Republic of Croatia. These are difficulties, according to numerous papers and many years of research by numerous scientist in the field of sociology and economics, that have the greatest impact on the emergence, growth and success of IT companies. The difficulties studied in this paper are solely due to forces and determinants from the external, macro environment of IT companies. So we do not focus on the individual characteristics of entrepreneurs and organizational characteristics of companies, which unquestionably, also have a great impact on the development of IT companies. After identifying all the most important and influential difficulties in the development of IT companies in Croatia, the goal is to compare their intensity with developed countries from EU and world, to get a clear picture of how competitive and successful are we in a very turbulent environment of the global IT industry. After we determine competitiveness of Croatian IT industry by comparative analysis and after we ascertain how suitable the environment is for the development of out IT companies, compared to other countries, the main result of that research will be specific administrative and legal issues (absurd, bureaucratic and numerous laws) and tehnical, technological, social and financial problems to which economic policy makers and influential individuals should pay attention.