All government subsidies represent actual and potential expenditures, i.e., they are reduced state revenues, and as such, they constitute the policy of states through which they influence economic entities. Although the concept and purpose of providing subsidies are generally known, less is known about the process of granting subsidies. In order to develop the economy and create market balance, it is necessary to understand the entire procedure of the formation and allocation of state subsidies. By joining the European family, the Republic of Croatia has taken on the obligation to harmonize its laws with European Union legislation. Subsidies that create an imbalance in market competition cannot be granted. These prohibitions are essential for fair competition in the international market among the European Union countries. Each country is specific in terms of the development of its regions, unemployment rate, and the existence of economic sectors facing more problems. Due to these specific cases, exceptions to subsidies exist, and the European Union allows for conditionally approved subsidies, namely: regional, sectoral, and horizontal state aid. This paper will explain the legislative framework for the allocation of state subsidies, who provides the support, and who can benefit from it. The focus will be on explaining what entrepreneurial zones are and the supportive institutions that assist entrepreneurs in project preparation and implementation. Special emphasis will be placed on entrepreneurs from the Dubrovnik-Neretva County and the state of the economy in that region. The research will explore the local-level subsidies available to entrepreneurs, including those provided by counties, cities, and municipalities. Through a questionnaire, entrepreneurs from the Dubrovnik-Neretva County will be surveyed to determine whether they utilize subsidies and whether the subsidies are well-adapted to their needs. The goal is to reach conclusions on whether any adjustments are necessary.