In this paper, the concept of entrepreneurship and innovation is primarily defined. The interdependence of these two concepts is described in the sense that today it is increasingly difficult to achieve the desired market position without innovation. The consistency of innovation is that it is more capable of tracking customers different preferences than more conventional ways. Features such as flexibility and innovation are particularly appreciated in this context. The emphasis is that we do not need to be the initiators of some new innovation that no one has, but that we can adopt the already existing innovation that will work perfectly in our company. The paper describes how to apply innovation in business by seeking ideas, market research, strategy implementation, and marketing. The statistical data on innovation in Croatian companies in the period 2012-2016 help us to understand how the trend of innovation is moving in companies. The result is good, so innovations have increased with years, though the main obstacle to introducing innovation is money. Innovations are generally applied in large companies rather than micro, small or medium-sized enterprises. Innovative practice in Croatia shows that innovation can not only make profit but also influence social well-being. There are a lot of Croatian innovation projects that need to revive, but they all testify to our society's awareness and to slowly gain awareness of the importance of innovation.