A prerequisite for successful entrepreneurial activity is the existence of a supportive entrepreneurial environment, defined as an ecosystem. The entrepreneurial ecosystem is a dynamic concept characterized as an assembly of interconnected stakeholders and factors that shape intentions for starting an entrepreneurial venture and further contribute to strengthening entrepreneurship in general. Considering that the effectiveness of the entrepreneurial ecosystem is perceived negatively in Croatia, this Master Thesis is trying to perform a comparative analysis of entrepreneurial ecosystems in Croatia and Austria. While Croatia is considered as a country where conditions for entrepreneurship are more unfavorable, the Austrian entrepreneurial ecosystem is seen as one of the best in Europe. The purpose of this research was to analyze the differences in the effectiveness of entrepreneurial ecosystems, while understandings will potentially contribute to improvements of entrepreneurship in Croatia. Some of the entrepreneurial ecosystem models were introduced and GEM model – Global Entrepreneurship Monitor was used as a conceptual framework for conducting the research. Secondary research was conducted first to determine the state of entrepreneurial activity together with alterations in indicators depending on the period observed in the two countries. For a representation of entrepreneurial ecosystems, fundamental factors were researched: access to entrepreneurial finance, support infrastructure, ease of entry, social and cultural norms, physical infrastructure, entrepreneurial education, transfer in research and development, and governmental policies implemented for purposes of promoting entrepreneurship. Empirical research done by questioning the perception of citizens gave an insight into efforts invested in promoting entrepreneurship. After performing a comparative analysis of gathered data, a set of five measures was suggested: revising the current measures that gave no results, innovative approach when introducing new measures and implementing changes, the urgent release of administrative and financial pressure for entrepreneurs, specializing support infrastructure for exact industries and encouraging the opening of more support infrastructure at higher education institutions. Stated measures have encompassed all the determined understandings within this Thesis and their implementation is necessary for enhancing entrepreneurship.