The role of entrepreneurship and enterprises for local economic development

Abstract

Most policymakers and academics agree that entrepreneurship is critical to the development and well-being of society. Entrepreneurs create jobs. They drive and shape innovation, speeding up structural changes in the economy. By introducing new competition, they contribute indirectly to productivity. Entrepreneurship is thus a catalyst for economic growth and national competitiveness. The paper presents the theoretical framework of links between the entrepreneurship, enterprises and local economic development through two conceptual models established recently. The rest of the paper presents the importance and measures to be taken to promote entrepreneurship and enterprises at a local level as well as several possible programs that may be included in local economic development strategies so as to support the entrepreneurship and development of small and medium enterprises given the fact that there are crucial factors impacting the economic development of certain locality.