Entrepreneurship in Croatia is predominantly male-dominated, with only 18.6% of companies owned by women. Cultural, social norms and business policies either support or hinder women’s participation in business. This paper explores the reasons behind the low engagement of women in entrepreneurship and examines the characteristics of female-led companies in the small and mediumsized enterprise sector. Key obstacles to female entrepreneurship are identified, with a focus on whether women experience discrimination compared to men and the most common forms of such discrimination. The research, based on a semi-structured questionnaire, surveyed 271 female entrepreneurs. Results show that 52% have encountered gender-based discrimination, primarily through traditional social stereotypes, limited opportunities for advancement, and difficulties in achieving work-life balance. Alarmingly, only 21.8% of companies have established procedures to address discrimination. These findings highlight the need for empowering women in entrepreneurship and strengthening protection against gender-based discrimination. The paper contributes to the academic literature on entrepreneurship by offering exploratory insights into the challenges faced by women entrepreneurs. However, the study’s limitations include the relatively small sample size in comparison to the overall population.