Small and medium-sized enterprises represent key economic entities in Croatia. The crisis indicates an unwanted situation that is able to hinder the further development of the company. With the onset of the economic crisis, the company is faced with the problem of insolvency, a situation where companies are unable to close their liabilities. The symptoms that indicate the emergence of a crisis may be different: loss of profit or loss-making business, reduced liquidity or illiquidity, decline in profitability. The role of management is to notice in a timely manner the symptoms that threaten the company to prevent illiquidity, and therefore insolvency. Successful business is possible if management recognizes the symptoms in a timely manner and chooses the best strategy to continue in business. In the area of the city of Split, small and medium-sized enterprises are of great importance as shown by the data available by the Financial Agency. Also, various institutions are of great importance because they help businesses through subsidies, incentives and various programs to educate staff and stay on the market. The insolvency of the company also affects the insolvency of citizens, because it is precisely the citizens who depend on the amount of income or wages. These salaries cover liabilities incurred and liabilities that may arise in the future. Management plays a decisive role in solving the problems that arise, but they must also take into account the social responsibility of the organization. The timely identification of potential crisis situations in the business is of great importance with the readiness of the management and prompt response can save the company from insolvency and poor business results.