The theme of this paper is innovation and entrepreneurship. Entrepreneurship is an important driver of the economy. Innovative activities play a special role in its development, providing companies with competitive advantages. To think differently of an innovative entrepreneur is different from that of "ordinary". For this reason, it is especially important to foster and develop an awareness of support for innovative activities, thereby influencing the strengthening of competitiveness. They are the most competitive economies and the most innovative, which proves the connection between innovation and competitiveness. The paper deals with the determinants of entrepreneurship and innovation. In addition, the impact of innovation on entrepreneurship was presented. Mate Rimac as an entrepreneur and his company Rimac Automobili was selected as a practical example of innovation in entrepreneurship. Mate Rimac, in a relatively short period of time, has risen from mediocrity through its innovations and continuous progress and has transformed it into a leader in innovation in the auto industry.