The topic of this paper is "Possibility of development of family entrepreneurship in tourism on the island of Cres". Today, tourism is an important sector in many countries, and in Croatia it stands out as one of the main drivers of economic growth and development. Thus, the connection between entrepreneurship and tourism is extremely significant, since through employment, income generation and GDP growth it affects the development of the overall economy. This paper gives an insight into the possibilities of developing family entrepreneurship and tourism on the island of Cres. The first part of the paper provides a theoretical background explaining the concepts of tourism and entrepreneurship and their importance for a particular country. The second part of the paper analyzes the state of tourism demand and supply on the island of Cres, and explains the theme of family entrepreneurship on the example of the Drinda company, which with its diverse tourist offer attracts tourists and grows its business over the years, becoming one of the most competitive family businesses on the island. By writing the paper, conclusions were drawn about the important role of tourism in the development of family entrepreneurship, which is evident in the work on the example of the craft Drinda.