Small and medium-sized enterprises play a key role in generating economic growth. The importance of the sector is especially evident in theemployment share of SMEs, total generated income and export. Today, success of SMEs is more crucial than ever. Expanding SME sector represents the key part of the solution to the long-term high unemployment rate issue in Croatia. Survival and development of small and medium-sized enterprises at the market depends on their ability to successfully compete and adapt to changes in the market and in the society in general. SMEs are highly represented in the service industry sector and a large number of SMEs in Croatia are active in this field. Pappagallo d.o.o. for more than a quarter of a century, Pappagallo d.o.o. has managed to keep its position in the market, even in times of social changes which also reflected in the language service market. Still, as the wheel of social development and social changes never stops spinning, supply of services in the market is continually replenished with new participants, new enthusiasm and fresh ideas, and even companies like Pappagallo d.o.o., with well-established tradition and reputation, need to strive to remain competitive and keep up with current trends in the industry. Therefore, it is crucial for Pappagallo d.o.o. to keep track of innovations and to invest in current teaching and learning technologies and training of its staff. In the future, Pappagallo d.o.o. plans to make effort in use EU funding mechanisms and other increasingly available modes of financing through projects.