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The main goal of the paper is to focus on relationship between business cycle under regional entrepreneurial culture. Many of the trends found were less than positive, although there were some new positive trends that could be identified as a source of sustainability in the area of the connection between the sector of small and medium sized enterprises and the local entrepreneurship environment as well as a source of entrepreneurial culture. Moreover, the frequency of co-operational activities with local government was investigated. Questionnaire-based research was undertaken within 194 organizations of various legal forms operating in the area of the Moravian-Silesian Region. The main factors, which had an influence on their current business stage (49.5% in the growth stage, 9.8% in stagnation, 31.96% in decline and the other 0.52% in crisis), were the locality in the region, the quality of the labour force, cooperation with local public bodies and the business relationships between suppliers. Finally, we have defined the current stage of the entrepreneurial culture as the "Sandbox".
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