Representatives of economic and legal sciences very often deal with the issue of the comprehensive impact of local government units on creating local development conditions. The experiences of recent years indicate that public entities, including local government units, are active participants in the local market. This participation can take direct forms when the local government units participate in the market, but also an indirect form, when the local government units act as the regulator of this market. The main restrictions of local government’s participation in the market are the law framework, the expectations of the local government community, financial condition and the risk associated with business operations.