The Role of Local Government Activities in Creating an Entrepreneurial Environment

As socio-economic development is now viewed from the local perspective all around the world, it is difficult to imagine self-contained spatial units without the involvement of the local government in various activities. Local authorities play an important role in socio-economic development mainly due to the possibility of direct contacts with business entities. Noticing and identifying emerging problems, they indicate solutions or inspire actions intended to address them. Considerations on the role of local authorities in building an entrepreneurial environment are a subject matter of research into local development. Still, there remain certain questions to be answered: How are local authorities supposed to create an entrepreneurial environment? Should they directly support local entrepreneurs, or would it be better if they focused on indirect activities? Which of the undertaken activities do local authorities perceive as the most pertinent and realistic to conduct? The above research questions drew the authors’ attention to examining the activity of communes, including the types of activities they undertake. In order to achieve the research goal, the authors carried out a literature review and pilot surveys. This study showed that some of communes’ activities are legally regulated, and their funding depends on the commune authorities. On the other hand, obligatory activities from the second group are dependent on the specificity of the commune, observations of local authorities and their awareness of the needs of entrepreneurs and of the local business environment. The scope of activities is determined by both the type of commune and its financial capacity.