The Municipal Competitiveness Index (MCI) is a composite index developed to measure the performance of local government in establishing a sound business environment. MCI allows one to understand the barriers in doing business as identified by companies in respective municipalities. The ultimate use of MCI is to inform policy makers about their opportunities to improve the productivity and performance of the private sector by reducing barriers, eliminating redundant administrative procedures, enhancing a fair legal environment and providing necessary infrastructure conditions. The cornerstone of this methodology is to gather primary data through surveys with business owners and entrepreneurs. This is the sixth year that USAID Kosovo supports the implementation of this study with the aim of guiding policy reforms which are based on evidence.