Modern economic development implies special attention to promoting entrepreneurship and providing strong support according to the needs of small and medium-sized enterprises. In the European Union, the sector of micro, small and medium-sized enterprises makes 98% of the total number of enterprises and it represents a key generator of new employment, economic growth, innovation and social integration. Therefore, the European Union has created a number of strategic documents and instruments that simplify the administrative and regulatory framework for the establishment and operations of these enterprises, supports their development and provides the necessary sources of financing. The EU data show that the deficit of financing and complex administrative procedures are the biggest obstacles for new entrepreneurship in Europe. On the one hand, the European Union supports entrepreneurs through various programmes within which funding is provided in cooperation with local financial institutions that invest additional (private) financial resources and thus increase the total available amount of support. On the other hand, support is provided from the EU funds that are allocated to each member state through the multiannual financial framework by which common strategic goals are to be attained at the European level. Therefore, the main objective of the paper is to present basic framework and the possibilities of financing entrepreneurship activities in the European Union, with special attention given to financing sources from EU funds that are available to entrepreneurs in Republic of Croatia in the period from 2014 to 2020. Analysis and review of the available financing from the EU funds will indicate significant amounts of funding intended for supporting the entrepreneurship, creating new jobs, developing business competitiveness and economic growth.