Business is an important tool for economic development and stability. The establishment of an enabling business environment has been broadly acknowledged as an essential precondition for the private sector response that leads to dynamic growth, and ultimately employment and income generation. The Government, therefore, has the main role in creating an enabling business environment. For this reason, it is of immense importance to design rules and regulations that stimulate the growth of enterprises. Recently, policy makers and multinational organizations have increasingly focused on a sound investment environment as a strategy for economic development. Various reports from international organizations link the need to reform the business environment with attracting foreign investors, the key developments that would smooth the country‘s economic progress and social stability. Strengthening the business environment in Kosovo is a mechanism that would support an increase of foreign direct investments and would accelerate the institutionalization of competitive conditions for both domestic business growth and external businesses‘ investments in Kosovo. Moreover, the development of a more attractive business environment would in turn improve Kosovo‘s attractiveness in the region and for the whole of Europe. However, despite its importance, there has not been any significant improvement in the business environment of Kosovo over the past two years.