The topic of this thesis is research of the youth entrepreneurship together with challenges and opportunities for development in Croatia. In order to elaborate the topic more thoroughly, the thesis starts with the definition of the fundamental terms such as entrepreneurship, an entrepreneurial venture and young entrepreneurs. Youth entrepreneurial activity is researched within the European Union and Croatia. Also, the main problems considering youth entrepreneurship on the personal level, but also on the level of the existing ecosystem of young entrepreneurs are identified. Secondary research was conducted to collect the relevant knowledge about the topic. The emphasis is on the conducted empirical research which used the focus group method. The participants of the focus groups were young people with a keen interest in entrepreneurship. Consequently, the results obtained in the research are the best indicators of the current state and beliefs of the potential young entrepreneurs. They do not plan the development of their entrepreneurial ventures in Croatia, they hope for radical changes in the government and politics, and they do not see a bright future of youth entrepreneurship if the circumstances remain the same. After collecting the data, conducting the research and analysing the results, it was observed that unfavourable conditions, such as financial burden and lack of entrepreneurial climate for engaging in youth entrepreneurship, are present in Croatia. For the purpose of developing this area of activity, certain measures for development of youth entrepreneurship, which are classified according to the hard and soft support that they include, are proposed in the thesis. The institutions that are in charge of implementing the measures and providing professional help for entrepreneurs in Croatia, such as Ministry of Economy, Entrepreneurship and Crafts and Croatian Chamber of Commerce as well as entrepreneurial incubator and centers like Impact Hub and Zagreb center of Innovation are mentioned.