The sustainable development of family entrepreneurship in the Croatian hotel industry has been insufficiently researched, but in the time of globalization of tourist markets, it becomes necessary to consider future development. On the fundamental postulates of sustainable development; ecological, social, and economic sustainability offers a stimulating concept of integral sustainable development in the Croatian family entrepreneurial hotel industry. It is important to emphasize that interdependence and the application of sustainability can be achieved only in case if all of the dimensions of sustainability are in dynamic equilibrium. The focus of this scientific research and doctoral work is the creation of prestigious and modern family entrepreneurship in the hotel industry of the Republic of Croatia under the principles and practice of sustainable development. The premise of this paper is to investigate in which extent the set goals of sustainable development contribute to faster, more efficient, and dynamic development of family entrepreneurship in the Croatian hotel industry as well as its economic and other kind of progress in the increasingly demanding tourism market. It is important to emphasize that the goal here is to explore the specificity - the uniqueness of sustainable development that has the potential for wider diversity, higher level of quality, competitiveness, and growth of family business in the Croatian hotel industry and all the overall level of lucrativeness and better positioning in the tourism market. The specific objectives of the research are: (a) to investigate existing scientific and professional (both theoretical and practical) knowledge regarding the reality of the need to establish the concept of sustainable development as a stimulus for family entrepreneurship in the Croatian hotel industry, with the objective of faster growth, higher level of greater diversity, quality, and competitiveness; (b) to scientifically explore the need for strategic and operational thinking and planning the establishment of partnerships (public, private and civil sector) that would be more effective, in order to achieve sustainable development, with the objective of creating real incentives for family entrepreneurship in the Croatian hotel industry and achieving the concept of greater profitability; (c) to present scientifically based concepts of successful implementation of sustainable development as an incentive for family entrepreneurship in the Croatian hotel industry, with their similarities and differences; (d) to consider the concept of inducing scientifically based guidelines for improving the current state as well as creating a better state of sustainable family business in the hotel industry of the Republic of Croatia in the future; (e) to examine the need for more harmonized implementation of legislative and other EU provisions regarding the implementation of sustainability in the national economic policy and more efficient use of relatively limited capacities of family business in the hotel industry of the Republic of Croatia. More about the topic can be seen in the chapter: „1.3. Purpose, goals and expected scientific contribution of the research". This is also an important concept in promoting trends in tourism and is considered a realistic alternative to mass and unified tourism, which is related to the purpose and task of this research. The intention and purpose of the doctoral research work is to elaborate and investigate in more detail the aspects of sustainable development in the functioning of economic policy to encourage small and family entrepreneurship in the Croatian hotel industry and to identify all important aspects of improving the existing situation. Accordingly, the research task is to determine hitherto insufficiently known scientific facts, knowledge, as well as the practical rules in the field of economics and other relevant scientific disciplines, related to the improvement and implementation of sustainable development policy as an important stimulus for small and family businesses in Croatian hospitality. More about the topic can be seen in the chapter: „1.3. Purpose, goals and expected scientific contribution of the research". The methodology of the scientific research conducted here is based on the research of available literature from primary and secondary scientific and professional sources as well as the conducted appropriate quantitative and qualitative statistical and scientific analysis of the results of the empirical research conducted here by the survey method. The research methodology in this paper includes the definition of the research sample and research variables, with the use of appropriate scientific research methods and procedures that led to the results of the research conducted here. Following the previously set objectives of the research, one main hypothesis and three auxiliary research hypotheses were set, and they were tested using the results of the primary research by surveying a selected and representative sample and using independent and dependent variables and compared with the results. research from secondary sources. Main hypothesis is the following: There is a significant connection between sustainable development and the development of family entrepreneurship in the Croatian hotel industry. First auxiliary hypothesis: Sustainable development contributes to foreign and domestic investments with the objective of stronger development of family entrepreneurship in the Croatian hotel industry. Second auxiliary hypothesis: The policy of sustainable development of family entrepreneurship in the hotel industry affects the increase of diversity, quality, and competitiveness of the price of the tourist offer in the Republic of Croatia. Third auxiliary hypothesis: By positively revaluing the incentives for sustainable development, Croatian tax policy enables the development of family entrepreneurship in the hotel industry. See more in the chapters: „1.5. Scientific research methods" and „6.1. Research methodology". The results of the empirical research conducted here are obtained by using the survey method "on the state and possibilities of achieving sustainable development as an incentive for family entrepreneurship in the Croatian hotel industry" (made primarily in Kvarner (Opatija, Rijeka, Crikvenica, Novi Vinodolski and Senj)), Dalmatia (Split, Zadar, Šibenik and Omiš), Istria (Poreč, Umag, Rovinj, and Rabac) and Zagreb (city and the county)). The survey was conducted: (a) via a classic and electronic e-mail questionnaire in the period from March to May 2018 on members of the National Association of Family and Small Hotels, where 126 were identified as family hotel companies (and represents the total population), out of 380 regular and associate members of the said association; (b) on a chosen sample of 100 small family hotels in the hotel industry, which makes up for 79.37% of the population, and the return rate is 66% (ie the survey questionnaire was completed by 66 respondents) of small family hotel companies, which represents 52.38 % of the total population, and is therefore considered representative. See in more detail in the chapters: „4.4. Strategy and valorization of family Croatian entrepreneurship", „5.4.1. Analysis of the state of the Croatian family hotel industry", „6. Proposal of a model for promoting sustainable development in the optimization of family business operations in the Croatian hotel industry", „6.3. Research results" and „7. CONCLUSION„. Theoretical knowledge and evaluation of the state and possibilities of sustainable development as an incentive for family entrepreneurship in the Croatian hotel industry enabled testing and confirmation of the main and the other three auxiliary hypotheses on sustainable development as an incentive for family entrepreneurship in the Croatian hotel industry. In addition, it is possible to develop a proposal for a model of promoting sustainable development in the optimization of the family business in the Croatian hotel industry. From the scientific research conducted here and the results that were obtained, it is clear that economic sustainability, as a more important segment in the business of family business in the hotel industry, is still not achieved to the expected extent. This is especially evident if the basis of business is not sustainable to the full extent and whenthe business is not based on the principles of sustainability (and in ancillary activities and other content). The socio-cultural dimension of sustainability is also nurtured with the help of the appropriate application of "indigenous identity", e.g. in the domain of gastronomic, geographical, or historical-cultural identity. "Indigenous identity" is of good quality if it is sufficiently represented. Furthermore, from the aspect of the ecological dimension, the condition and care for the environment are within on the satisfactory level. The same is continuously improved to achieve an enviable level of tourism sustainability, which is also a process of achieving a balance of all three components of sustainable development. They are largely based on the support of family Croatian hoteliers and entrepreneurs, but not on the support of relevant institutions that are supposed to support the strategy more strongly and concretely, as well as supporting the implementation and development of sustainable tourism, ie support sustainable development such as "condicio sine qua non" on the persistent path to progress and success. The results of scientific research should contribute to and improve the concept and strategy of sustainable development as a stimulus for family entrepreneurship in the Croatian hotel industry, which implies a positive effect on the development of tourist destinations. Also, the scientific research conducted here results in the scientific contribution of the doctoral dissertation in the analysis of the current situation, intending to improve the future situation, especially in defining goals and concrete innovation of operational strategies in implementing sustainable development of family business in Croatian hospitality and use of natural resources. serves as an ambitious incentive for family entrepreneurship in the Croatian hotel industry. The envisaged scientific contribution was made in: „(a) theoretical sense, a systematic overview of theoretical knowledge in the field of sustainable development, Croatian family entrepreneurship and hospitality (definition and classification); a strategy and concept of successful integrated implementation of sustainable development as incentives for family entrepreneurship in the Croatian hotel industry, the application of economic principles and scientific methods in the research of sustainable development, hospitality and family entrepreneurship resulted in knowledge about the competitiveness of family entrepreneurship in the Croatian hotel industry and beyond, deepened theoretical knowledge about the application of sustainable); (b) in terms of application, the strategic importance arising from the proper and integrated management of the concept of successful implementation of sustainable development as a stimulus for family entrepreneurship in the hotel industry of the Republic of Croatia (its better positioning, faster conquest and retention of the target market) was expressed; development as a stimulus for family entrepreneurship in the hotel industry of the Republic of Croatia through all aspects, initiatives of integral application of sustainable development in family entrepreneurship in the hotel industry of the Republic of Croatia and its importance in tourism are highlighted). Achieving the intended scientific contribution of the doctoral dissertation in theoretical and applied terms gives a certain contribution to the scientific field of social sciences, economics, general economics (or microeconomics), which is the result of research defined by the research goal and proving the main hypothesis as well as the three auxiliary hypotheses. This enables the definition of guidelines for potential improvement of the current state and trend of implementation and also for the improvement of sustainable development policy as an important factor in encouraging the expansion and development of family business in the hotel industry, which should potentially contribute to Croatia's hotel business and further economic development and prosperity. Thus, the author's proposal of an integral model for promoting sustainable development in the optimization of family business operations in the Croatian hotel industry (with explanations) is hereby presented. For more details, see the chapters: „1.3. Purpose, goals and expected scientific contribution of the research" and „7. CONCLUSION".