Graduate paper in short lines lists and describes different types of partnerships and networking such as strategic partnerships, strategic alliances, clusters, entrepreneurial zones, virtual organizations, and constellation partnerships. The paper is displaying descriptions of these partnerships and networking, and highlighting the advantages and disadvantages of each mode of business. The aim of the paper is to show the advantages and disadvantages of partnership and networking in small and medium enterprises, which, in addition to the theoretical part, is presented with the help of interview with the member of the Management Board of Đuro Đaković Special Vehicles Darkom Grbcem on the strategic alliance Đuro Đaković Special vehicles and the company Partia Land Systems, and by interview with Deputy Mayor of Slavonski Brod Teom Tomas on the theme of the „Slavonian Basket“ Cluster. Part of the graduate paper is devoted to sharing economics as a new trend in the business world. With the definition and explanation of the two basic models, the sharing economy is presented with the world's most famous examples, which are also the most prominent in Croatia. Through the research on this topic we can conclude that small and medium enterprises are important for economic development and reduction of unemployment. Due to their size, they are quicker to adapt to market changes and meeting new needs. Regardless of the above mentioned advantages, small and medium-sized enterprises also have their shortcomings. The resource constraint can lead to lack of information to identify new opportunities or opportunities for hiring top experts and often lack investment capital. In order to overcome all obstacles, they realize that it is in their best interest to make partnerships and network with other companies. Methods of desk research (books, reports, web pages) and methods of interviewing were used in the graduation paper.