The paper focused on the role urban administration plays in development of entrepreneurial activities among citizens. Considering the capacity of urban administration in resourcing, motivating and creating a platform for entrepreneurship, a model for driving entrepreneurial activities to urban services, by providing capacity needed has been provided, to offer an effective and usable strategy for urban administration. In formulating such model, firstly advantages of entrepreneurship and necessity of paying attention from urban administration to the role should play in that has been explained, then literature on entrepreneurship has been investigates to introducing the effective factors in entrepreneurship development. These factors divided in two category of personal and environmental, and relationship of urban administration to three scope of citizens, government and environment investigated. In result a model has been developed to explain effect off urban administration in development of entrepreneurship. finally some propositions for further research in future has been offered.