In the case of crises and emergencies, the biggest focus is on the economics and the economy, but the crisis occurs and in any other ascpet of human work. The crisis represents a situation, event or process that can cause great damage to society as a whole, and the knowledge of the existence of the problem the first step to cope with the crisis. Equally, the risk management process identifies one of the instruments of crisis management, but must be integrated into the overall control process in order to be a successful company. Small and medium entrepreneurship in the Republic of Croatia is a fundamental driver of growth and development and is one of the leading sectors of the economy that have a positive effect on employment and economic development. In this thesis emphasis will be placed on the impact of the crisis in the small and medium enterprises in the Republic of Croatia from 2005 to 2015, just as that sector of small and medium – sized enterprises play a key role in creating competitiveness.