The subject of this final paper is “Increasing Competitiveness and Efficiency of a Family Business Through Using EU Grants “. Most of Croatian companies in small and medium entrepreneurship are still not inclined to seek the financial resources from the European Union (EU) funds, thereby reducing their ability to achieve competitive advantage on the market. The companies in this sector are not inclined to seek the financial resources from the EU funds because they lack experience, they have no enough knowledge about the necessary documentation and the entire process seems very complicated to them. The purpose of this paper is to show how a competitive advantage can be achieved on the market with the help of the financial resources from the EU funds. Based on desk research and real-life experience of the company’s project application for receipt of non-refundable financial resources from the funds, the measure in which the received non-refundable financial resources improve the business operations of the company was established. The research has shown that the non-refundable financial resources have greatly affected the market competitiveness of the company Pućo The company has increased its share on the domestic market and has entered foreign markets. Based on this example we can conclude that the non-refundable financial resources from the EU funds can make a positive contribution to the competitiveness of entrepreneurs. Further research should focus on reasons why Croatian companies are still not inclined to seek financial resources from the EU funds and possible solutions that can change the current situation.