Introduction to the theme (local level)
The essence of the model in terms of entrepreneur activities that might contribute to economic profit and improving quality of life. (with section on Entrepreneurial activities, Quality of local community and Local capacity)
I.1. Entrepreneurial activities
Entrepreneurial activities are found to be another factor for enhancing local economic development. Increasing the level of entrepreneurship that contributes to the region’s economic development will take time. Despite its long-term impact, entrepreneurship should be seen as one of the main stimulators of local and regional economic development. Interventions to increase the entrepreneurial activity, requires significant policy attention, not only at the national, but also at the regional level. Stimulating these activities may increase income, quality of life, and return on investment. Entrepreneurial activities are related to outside actors, human coordination, and bridging social capital.
Future research should examine what type of entrepreneurship is mostly found in regions with low economic development. These results can be used in the process of local economic development to stimulate entrepreneurship. Besides the indirect spillover effects on local economic development that entrepreneurship initiatives create, researchers should also find more direct links.
I.2. Quality of local community
The quality of the local community will influence the effectiveness and solidness of local economic development interventions. Community indicators are important because they enable the cooperation and collaborations between government agencies, private citizens, businesses, and community organizations. Development interventions depend on the quality of the local community. The quality of a local community focuses on the distinct segment of society that includes local stakeholders, a public and private sector, local actors, local leaders, and entrepreneurs. Associated research has investigated how members from the community can contribute to local economic development. Furthermore, it is examined how the quality of life for the local community can be improved.
Future research should examine which indicators, such as quality of life, are relevant and helpful in the assessment of the quality of the local community.
I.3. Local capacity
Local capacity refers to the extent to which a region is able to engage in local economic development. This includes the ability to protect members of cooperatives against price risks, the presence of universities, resource endowments, production organizations, success factors and problems of entrepreneurs, the extent to which foreign firms adapt to local changes, and relationships between governmental and non-governmental organizations. Capacity building is not a final destination, but a process that enables both communities and other actors to learn and to develop, through the opportunities that arise during the process. Improved capacity is a necessity for social resilience and economic development.
Future research should focus on refining the dimensions of community capacity, increasing the understanding of its interactions. Furthermore, research should also focus on finding how local capacity interacts with other domains of the Multi-Level, Multi-Actor model.