The thesis researches the biggest obstacles and problems of starting your own business in the Republic of Croatia, and it also analyses how much the students in Croatia are familiar with the concept of business incubation. Poor organisation of economic system, lack of funding, complexity of administrative requirements and limited access to necessary information represent a big problem for people who are considering starting their own business. In addition to the analysis of available secondary sources, a survey was conducted using a survey questionnaire. Part of this thesis is based on answers collected through two surveys. One of them was for students in which the sample size was seventy-five respondents, and the second one was for entrepreneurs using incubator services for which the sample size was thirty-five respondents. The survey results of this sample show that better public awareness and additional education about business incubators, would make a positive impact on growth of the number of new companies and certainly an increasing number of young people would decide to take on new entrepreneurial ventures. Furthermore, with the results of the survey, it was affirmed that the surveyed students do not have enough knowledge about the the business incubators and that the surveyed residents of incubators are on average satisfied with the work and services that the incubators offer. Residents of incubators are also entirely confident that incubator services are a big advantage for young entrepreneurs. Entrepreneurs recommend to all entrepreneurs who decide to start their own business in any form, not to hesitate and to take advantage of incubator services or services of other institutions offering support as they will facilitate the first steps towards the success of their own business.