This master's thesis explores approaches to sources of financing as a particularly important area of interest for small and medium companies. Namely, under the influence of changes in the global economy, the position of entrepreneurship is changing drastically - it is increasingly perceived as a generator of economic growth. For this reason, the work is focused on the conceptualization of the model of financing entrepreneurship and economic growth. Recognizing the importance of entrepreneurship for the economic growth of their economies, most countries have accepted entrepreneurship as a vital component of their development. Therefore, companies that do not follow trends in financing or lent "more expensive rates and costs" than other companies ,lag behind in the market and will find it difficult to keep up with modern requirements of dynamism and business flexibility. Therefore, it is important to explore the sources of financing of small and medium companies in the Republic of Croatia, in order to gain a clear insight into the market situation. It is also important to make a comparison with the European Union in order to identify areas or sources of funding that are not used and developed in the Republic of Croatia and whose use would increase the competitiveness of companies. Following the above, in the Šibenik-Knin County, it is necessary to systematically encourage the development of small and medium companies as the backbone of economic development. The results indicate that there are similarities and differences in the perception of the use of funding sources, but the definition is clear, that Šibenik-Knin County sees a small business definitely a driver of growth and development, that works for the benefit of society and not just the 96 individual entrepreneur. Improvements are urgently needed that, by further observing and analyzing examples from developed European Union countries, will accept all useful tools and activities that have advanced science and developed technology over the past fifty years, but also eliminate potential dangers that can shake much larger economies. Besides that, reference is made to the importance of the institutional environment in encouraging entrepreneurs. By introducing one of the key factors of progress, entrepreneurs generate new products, implement new technologies, develop and innovate new services, contribute to economic growth and development, and thus increase the general well-being of the societies in which they operate.