THE ROLE OF LOCAL AUTHORITIES IN CREATING CONDITIONS FOR THE DEVELOPMENT OF ECONOMIC ACTIVITIES: A CASE STUDY OF RURAL MUNICIPALITIES IN POLAND

Abstract

The author’s purpose has been to point to initiatives that can be undertaken by authorities in rural municipalities in order to create positive conditions for the growth of entrepreneurship in their territorial units. Parallel to a review of selected references, a survey method was employed, which relied on a questionnaire developed by the author and addressed to local authorities in all municipalities across Poland. Out of 2 479 Polish municipalities, 1 220 responded (d – measurement error = 2%), of which 770 were rural ones (49.17% of the rural municipalities in Poland). The socio-economic environment and spatial conditions of rural areas are different from the ones which prevail in an urban setting. Local governments are equipped with instruments with which they can take advantage of the potential they possess and thereby achieve their goals. Local authorities take initiatives together with the entrepreneurs who are already active in their municipality. Strategically orientated local government officials offer various forms of assistance to entrepreneurs. Regions, towns or municipalities are now competing fiercely for the capital. Developed land parcels (technical infrastructure) are no longer sufficient to attract investors. Other, innovative and business-friendly solutions must be looked for. A municipality which is successful in this search gain a competitive advantage, will attract some capital and, in a further perspective, will attain a high economic growth.

Keywords: local authorities, local development, economic activities

Article DOI: http://doi.org/10.15544/RD.2017.249