Introduction to the theme (institutions and entrepreneurial activities)
The institutional setting of the entrepreneurial activities (with sections on link with empowerment and the link with human coordination
IV.1. Link between institutions and empowerment
Institutions play a crucial role in the community empowerment process. On the one hand, an empowered community is able to take action to achieve influence over the institutions with affect their lives. On the other hand, empowering a community requires the removal of formal and informal institutional barriers that prevent the community members from taking action to improve their wellbeing. This link indicates how community empowerment is increased by the relationship between governmental, non-governmental institutions, and the local community. Furthermore, local institutional aspects may cause problems in technology transfer projects.
Future research should try to show more precisely how institutions support the community empowerment process. Empowerment will enable the community members to take control over their lives.
IV.2. Link between institutions and human coordination
Governments are the central coordinator in local economic development. Although the role of governments in coordinating economic development activities is essential, governments are starting to apply a more bottom-up approach. This bottom-up approach involves the creating of a new entity, Coordinating Council, which will be responsible for coordinating local economic development. Institutions are important for facilitating human coordination efforts for increasing local economic development. Research focuses on the link between human coordination and institutions and the cooperation between coordinators and institutions.
Future research should examine the effectiveness of coordination councils for local economic development and explore the idea that local economic development activities are coordinated by multiple institutions at the local, regional and national level.