Since 1989, Prague has become attractive in a number of ways to business entrepreneurs. First all, its location offers many positive possiblilities. Since the Czech Republic has a central location in Europe - Prague is in fact sometimes called the "Heart of Europe" - it can serve as a place for Eastern Europeans to immigrate and work in a better environment than their homelands. For Western Europeans, Prague may be seen as a place to start a business since trade licenses and labor are both cheap by European standards. Prague's attraction as a cheap place attracts many novice entrepreneurs, which is one of the reasons there is such a high turnover of companies in Prague. Reportedly, 50% of the names and addresses of businesses change every six months. This has deterred some foreign investment because investors fear that they, too, will not succeed in Prague.

Another reason that Prague is attractive as a place to start businesses is becasue it is increasingly popular among tourists.