CHALLENGES OF SMALL ENTREPRENEURSHIP IN THE SUSTAINABLE DEVELOPMENT OF TOURISM IN THE REPUBLIC OF CROATIA

Purpose – The paper deals with the challenges faced by small and medium-sized enterprises and small tourism enterprises in the Republic of Croatia during the transformation of business towards sustainability. The answer to these challenges can be seen in the positive effects on the local community through participation in community welfare, preservation of natural and cultural heritage, environmental protection, etc., i.e., through contribution to the sustainable development of tourism. Methodology – The paper presents the results of research obtained by surveying small entrepreneurs in tourism about the characteristics of small businesses and the challenges faced by small businesses in tourism in the Republic of Croatia. The basic hypothesis that small businesses in tourism contribute to the sustainable development of tourism in the Republic of Croatia is proven. Findings – Empirical research has shown the negative impact of business risks, i.e., the challenges faced by small tourism entrepreneurs in their operations, on the sustainable development of tourism (economic sustainability, ecological sustainability, cultural sustainability, sustainability of the local community). Contribution – The conducted research can be the basis for further research on small entrepreneurship in tourism and sustainable development of tourism in the Republic of Croatia. It contributes to the enrichment of knowledge about the profile of small entrepreneurs in Croatian entrepreneurship and to the understanding of the challenges that small entrepreneurs face in business.