The legal and strategic framework for regional development in the Republic of Croatia, which includes the development of entrepreneurship, was established almost twenty years after Croatia had gained independence. Until then, less developed areas, i.e., areas with a special status in terms of certain reliefs and exemptions granted to citizens and economic entities had been supported through individual laws. Today, government authorities stimulate entrepreneurial activity through individual regulations in force,by corporate income tax exemptions. The state gives back corporate income tax (tax liability not subject to exemptions) that taxpayers engaged in entrepreneurial activities had paid up to the state budget, to local self-government units as assistance from the state budget. By doing so, the government aims to reduce the gap between the developed and underdeveloped parts of the Republic of Croatia and encourage entrepreneurial activity in the smaller and less developed regions. The indicators of entrepreneurial activity in the area supported by the state: the number of enterprises, number of employees in an enterprise, the total revenue generated by entrepreneurial activities, profit and loss after tax and net operating profit/loss, provide insight into the performance of enterprises. In view of the above, the authors have analyzed the performanceof enterprises entitled to tax relief in the areas of special state concern and provided an overview of financial resources (tax revenue) which state authorities have waived to facilitate a more competitive business performance.