In every country, entrepreneurship is one of the most important indicators of the success of the economy and the development of that country. Countries that are aware of the importance of entrepreneurship work to create a business and regulatory environment that will encourage the development of entrepreneurial activities and innovations, and consequently affect employment, competitive advantage and sustainable economic and economic development. A large number of different studies point to the importance of entrepreneurship. One of the most significant is the largest international research on entrepreneurship, the Global Entrepreneurship monitor (GEM), which not only compares the level of entrepreneurial activities among countries, but also makes recommendations for the development of the entrepreneurial environment that can influence the increase of that level. The purpose of the paper is to review the level of entrepreneurial activity at the level of the European Union, with a special emphasis on Croatia, and to analyze the results of the GEM research, the research of the Institute for Entrepreneurship and Development (Global Entrepreneurship Development Index - GEDI), as well as the results of the Report on Small and Medium Enterprises, which is published every year by the Center for policy and development of small and medium enterprises and entrepreneurship (CEPOR). This paper explains the meaning of the term entrepreneurial country and provides an insight into what makes a country entrepreneurial, what is the motivation for starting entrepreneurial ventures, and what impact government measures can have on the country's entrepreneurship and competitiveness.