Barriers to entry exist if new enterprises (potential "entrants") are partially or completely prevented from entering a particular industry or market. There are numerous barriers to entry, but the most common division is into structural and strategic. Structural barriers to entry are associated with the specifics of an industry and differ from one industry to another, or may be market related. Strategic barriers are activities which enterprises undertake while carrying out their own strategy, with the aim of deterring or preventing the entry of others in the industry or market. The purpose of the study was to investigate the presence of profitability and growth in operating revenues and the cost of labor as entry barriers, and their effect on the dynamics of entry to a particular segment of the manufacturing industry. This industry is characterized by the highest share in gross domestic product and total employment, as well as the highest share in total Croatian exports. Research was conducted on small and medium-sized enterprises within the manufacturing industry in Croatia. Regression results indicate the importance of the growth rate of operating revenue, return on equity, return on assets and average cost per employee and their impact on the dynamics of entry in the manufacturing industry. PUBLICATION ABSTRACT