Business Friendly Certification South-East Europe (BFC SEE) is a unique program for improving the quality of services in municipalities in the region of South-East Europe, which is available to companies and potential investors. BFC SEE provides the top management of municipalities with a clear roadmap on how to create a favorable business environment and introduce internationally recognized standards of efficient and transparent local administration. For investors looking to invest or expand their business in Southeast Europe, BFC SEE serves as a standardized tool for assessing local business conditions, indicating which municipality in the region provides the best investment climate. The problem that will be addressed in the paper is focused on analyzing the effects of the introduction of standards and determining the justification of their application in local self-government units in order to improve the organization of business and quality of service provision. The goal of the research is to examine how quality management using the BFC SEE standard affects the creation of a favorable business environment and the increase in the number of business entities in local self-government units. In the framework of this research, important aspects related to the attitudes of the top management of local self-government units are questioned regarding their perception of the importance of standards and improvement of business processes that determine the attractiveness of the business environment. The research sample will include at least 50% of the local self-government units that have implemented the specified standard in the Federation of Bosnia and Herzegovina.