The paper examines the role of a favourable milieu in the region and the notion of social capital, work ethics and mutual confidence. Results of an empirical survey conducted among the foreign entrepreneurs in the Czech Republic are presented in the paper. The survey revealed opinions of foreign investors on cooperation and communication with various institutions in their environment. It also answered questions on the willingness to cooperate and the possibility of creation of cooperation networks of Czech and foreign firms in the local economy and analysed opinions and ideas about the general quality of the Czech entrepreneurial environment.

Key words: Foreign investors, socio-institutional environment, entrepreneurial environment, Czech Republic, structured interviews, pilot study.