The focus of this study is on the appropriateness of regional incentives for small scale enterprise location in less developed areas. The attempt is to identify the location factors in countries at different levels of socio-economic development; it is noticed that these factctrs tend to be dynamic in nature. A detailed analysis of the role of incentives shows that entrepreneurs do not consider incentives in detail, and the influence of incentives on location choice varies between the UK, Japan, and India, the three countries studied. The quality of administration also needs improvement for incentives to be effective. Finally, entrepreneurial perceptions about what constitutes an ideal incentive are elicited.