A great impact of family business on the overall economic image of a country and its vulnerability to the many challenges that accompany it throughout its life cycle define the backbone of this final work. The challenges faced by many current and future family entrepreneurs were the focus of the research with a focus on the particularities of family business. Concepts and characteristics of family entrepreneurship, supporting institutions and challenges in launching entrepreneurial endeavors in Croatia and in the world are defined. Inner leadership and management challenges of a family enterprise are described, and solutions to those challenges are described; from conducting business to managing conflict situations. Competitive strategies are addressed in the context of internal and external entrepreneurial environment, and the issue of inheriting as an important factor for the sustainability and development of family entrepreneurship. The obstacles encountered by women entrepreneurs are studied and a comparison is given for the reasons for such a position with regard to male entrepreneurs.The empirical aspect of this work is illustrated by the example of the trade, ZM-PROMET from Stara Subocka - company profile, the current challenges they encounter in a business environment, such as leadership and management, but also future challenges, in terms of inheritance and sustainability of competitive advantages.Therefore, it is recommended first to create a family constitution that would clearly define culture, control, capital, career and way of resolving conflicts. Then professionalization of management to preserve and increase competitive advantage. Appropriate legislation, statistical monitoring, and better cooperativeness among family businesses owners would help to find solutions and achieve more successful growth and development.