Abstract & Overview
The value of small enterprises from the information technology industry can be found in their intellectual capital; theseenterprises developed high value - added products and therefore contribute to the knowledge-based economy. Through the internationalization process enterprises gain long-term growth andsustainability opportunity on the foreign, as well as on the domestic market. Human capital and knowledge represent the basis for growthof the enterprises from the observed industry, especially for software development companies. Nevertheless, decreased demand for theproducts from the industry in the Republic of Croatia results in domestic information technology experts deciding to internationalizetheir business. In this paper primary research was carried out among micro and small software development enterprises in theRepublic of Croatia, with the purpose of analyzing thecharacteristics and the level of their internationalization as well as giving the guidelines for further development.