The paper deals with the theme of family entrepreneurship, focusing on challenges in managing the family enterprise, with which members of such a company are faced because of overlapping family and work in one system. The work is divided into five main chapters, the first of which deals with the definition and importance of a family enterprise, introduces its general characteristics, that is, the advantages and constraints facing such a company. The second chapter provides information on the current situation of family businesses of today – in the world, Europe and Croatia. The third chapter explains the leadership function more precisely, the role of the aforementioned function in managing the business, defines leadership styles and managing human and financial resources. In the fourth chapter, challenges of a family enterprise are defined, that is, the relationship between family and enterprises whose existence differs them from other companies, explains the conflicts that emerge, and defines the theme of business transfer as one of the most important challenges in managing a family company. As an empirical aspect of this paper, the fifth chapter introduces the example of a family enterprise "Zapad Commerce d.o.o" - data, history, family involvement in the business and challenges of business transfer with which this company was faced. In conclusion, the author brings the synthesis of the key elements of this paper with the purpose of better understanding the particularity of this kind of business.