The market, which define the three most important determinants: supply, demand, and price, as determined by an external factor income which they will be undertaking to achieve for their effects, and in a market economy, the realization of economic targets entrepreneurs primarily depends on its competitive advantages in the market, making it possible achieved only optimum combination of internal factors of production. Cost management assumes continuous firm's efforts to reduce costs, so that in the circumstances the business achieve better business results, no long-term negative effects on the operating results and market position. SMEs are particularly important segment of the economy of all countries of the world. In most countries, they make up more than 95% of all registered entities and their importance for the economic development of a country is reflected in generating revenue, creating added value and employment of a large number of people. Strategy for the Development of Entrepreneurship 2013th-2020th years is a direct response to a brief overview of conditions with the overall aim of increasing the competitiveness of small businesses in Croatia, through five strategic objectives. Innovation in SMEs undeniable prerequisite of competitiveness in the modern business. Without innovation activities, based on a predefined template firmly nnovation process and then the strategy, questioned the existence of a company.