System of local government functions of the firms affected by the economic status of the axis of the local administrations in Turkey and Bosnia and Herzegovina within the framework of the sample sites have been revealed. The firms in private sector is affected by completion of the properties of local government or private sector enterprises within the framework of competition. In sum may be argued, the economic functions of businesses affected by the degree of local governments (D) of local governments editing function (regulation), infrastructure provision function (infrastructure), supply function (supply), the consumer function (consumption), the financial markets to increase demand function (demand financial), the economic transfer function (economical transfer), increasing the demand function by means