This final paper describes the importance of corporate entrepreneurship for modern business and the reasons why the entrepreneurial approach to work generally is increasingly being implemented in corporations and companies. Corporate entrepreneurship is a frequently encountered term that is gaining importance in the modern business world because based on the analysis of most large companies, it turns out that it is a very good solution for achieving goals and making a profit. The paper firstly explains the term of corporate entrepreneurship, how it is applied, what it encompasses and what benefits it brings to modern corporations that are constantly struggling with competition in saturated markets where continuous innovation is essential. It is necessary to know the difference between incremental and radical innovations, because all the work lies on them and all the processes and efforts that a corporation can apply with the goal of entrepreneurial activity. Also, besides all the advantages of implementing entrepreneurial activities in the corporation, some challenges and some of the negative features that affect corporate entrepreneurship are explained. The entrepreneurial climate and culture of an organization as an important factor are also presented in more detail in this paper and linked to a concrete example in the empirical part of the paper. With the aim of approaching the theory and understanding everything that will be discussed in the paper, an interview was conducted with a representative of the middle management level of the company Kožul d.o.o. from Slavonski Brod and based on the connection of the theoretical and empirical part, the conclusions are presented in the final part of the paper.