In his article, the author undertakes an important problem concerning competition of small and medium enterprises in the regions' economy. He reminds that this sector is a basic causative factor, which forms quality of economic relations in the region, utilises managers' and employees' entrepreneurship for the purposes of regional competition and affect a new quality of relations with the territorial authorities in municipalities, towns and provinces. He also emphasises importance of the Integrated Operational Programmes for Regional Development and their structural ties with the Lisbon Strategy. The author notes that regional competition becomes a verifiable market phenomenon and a driving force for the regional market.