Youth unemployment in the Republic of Croatia is one of the main indicators of the unstable state of the country. Croatia is among the three worst countries in the European Union in terms of unemployment. Work has an important function in the life of an individual but also for the state, so high unemployment leads to economic, social, psychological and political consequences. Measures to combat unemployment such as support for employment, support for self-employment, support for training, education of the unemployed, vocational training, support for job preservation are of exceptional importance for society as a whole. From a macroeconomic point of view, the level of employment, technological progress of the country and development in general can be affected by the development of entrepreneurship, which consequently leads to the opening of new companies, new jobs, as well as the creation of new products and/or services. In order for entrepreneurship to develop in Croatia, it is necessary to provide a good entrepreneurial climate. The emergence and development of business incubators in Croatia as a measure to combat unemployment prevents brain drain and supports self-employment of young people, which is significant for the Croatian economy.