Considering the momentous status of the Cooperative Sector in creating opportunities for small and medium enterprises (SMEs), it seems that the Sector would be able to promote creative entrepreneurship across the nation through cooperative education and training and extending teamwork and cooperation. The present research, accomplished in three phases, aims to study the role of Cooperative Administration in East Azarbaijan in 2007. Related data was gathered through both documentary and questionnaire techniques. Statistical population consisted of 3 categories i.e. professors and entrepreneurial pundits, cooperative officers in provincial Cooperative Administration, and officers of functional cooperative societies across the province. A sample was taken based on Cochran sampling formula.Results show that any of the three categories evaluated five external indices, which included 33 factors, as highly influential in the promotion of entrepreneurship. However, two categories i.e. the officers of cooperative societies and cooperative officers in provincial Cooperative Administration, evaluated the performance of the Cooperative Sector (the status quo) according to the above five indices as lower-medium. It was also revealed that two indices namely "policymaking & planning" and "credit & non-credit facilities" were given the highest weight.Internal determinant indices, which were measured in the form of 29 factors, were rated as upper-medium by the officers of cooperative societies.Also, a review of the activities of the provincial Cooperative Administration within a five-year period (2003-2007) returned a satisfactory result in view of creating around 20, 000 jobs and raising 323.4 million Rls to establish 24100 cooperative societies.