Favorable business environment including political, technological, economic, social and other determinants is one of the crucial factors influencing the decision to start a business. The aim of this paper is to define and quantify significant political factors which determine the perception of the quality of business environment (QBE) of small and medium-sized enterprises for starting a new business in Czech Republic and Slovakia. Data of an extensive research conducted at Tomas Bata University in Zlín in 2018 was processed by means of regression analysis. The results show that QBE in both countries is mostly affected by state regulation and state support of business activities, followed by legal environment. The factor supposed to be the third one differed in each country. While QBE is also determined by the quality of education in Czech Republic, this factor is not statistically significant in Slovakia, and the state bureaucracy is. Therefore, governments of both countries should continue facilitating start-ups' development by reducing and eliminating administrative barriers, improving access to finance, and by adapting educational programs involving entrepreneurial education at different educational levels.JEL Classification: H70, L26, M13, M29