This paper analyzes the potentials for the development of family entrepreneurship in the city of Knin and its surroundings. The aim of the paper is to identify and analyze the key opportunities and resources that can stimulate the development of family businesses in this area, with a special focus on tourism potentials, cultural and natural heritage, and the possibilities for developing rural, sports, and excursion tourism. Additionally, the paper examines the potentials for the development of agriculture as an important segment of the local economy.Through the analysis of legal regulations and various aspects of sustainable development, the importance of sustainability as a key factor for the long-term success of family businesses is emphasized. The paper also identifies key assumptions for the successful development of family entrepreneurship, including support from local and regional authorities, infrastructure development, branding and promotion of products, and attracting investments. Special attention is given to EU funds as sources of financing and examples of successful family businesses from Knin and its surroundings, which can serve as inspiration and models for future entrepreneurs.