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The main objective of this book is to determine the constrains and the challenges that foreign entrepreneurs face while investing in Southeast Europe and to measure the impact of these constrains to the real amounts of FDI flows.The impact of the quality of the infrastructure, availability of finance, the flexibility and the regulations of the labor market, the level of corruption and crime, trade, the quality of the court system and the level of innovations and technology on the case countries; Macedonia, Albania, Serbia, Bosnia and Herzegovina, Croatia and Slovenia were examined. The findings of this work suggest that countries like Slovenia and Croatia which were ranked higher with respect to the evaluation of these constrains also succeeded to attract more FDI. At the same time countries like Albania, Bosnia and Herzegovina, Macedonia and Serbia that were ranked lower were not able to attract FDI.