The article analyses the real situation in the regions and municipal development in Latvia. Analyzed the flow of finan¬cial resources in the regions and municipalities. It is noted that the management of the financial resources as a result of the amount of money per capita, used by local authorities to carry out their functions vary substantially. Significant differ¬ences exist in the level of income of the investor and the level of economic activity in the regions. The article noted that the desire of entrepreneurs to invest in the territory of the current working resource quality level, their age and structure of each business activity direction requirements can be quite different. The article says that if no private investor interests to expand trade in the region, but its executives see it, then they should be given opportunities to exercise, stimulating such activity, rather than tackling it.