THE ROLE OF LOCAL COMMUNITY IN THE DEVELOPMENT OF SMALL AND MEDIUM COMPANIES

Abstract

We are witnesses of the change ineconomic system, and the transition fromcooperative to market economy and the era ofprivate capital. Major business systems that used tobe the foundation of development mostly do notwork today. The privatisation of the companies didnot give any results. Small and medium companiesshould be a replacement for the major systems andemploy a great number of the workers that havebeen left unemployed. Central authorities havedone very few things for the support anddevelopment of small and medium companies. Thechange in the role of local community has alsohappened, and it has a key role in providing morequality living, through the development of economyof the growth and development of small andmedium companies and decrease in unemployment.The increase of employment can be achieved byincreasing the number of companies or byexpanding the existing ones. Local communitiesshould take various measures to establish abeneficial environment for their development,including various programs, supports, allowances,facilities for potential investors, etc. It is necessaryto ascertain the models of cooperation and supportwith the aim of their development and increase incapacities. The aim of this paper is to show that alocal community which uses the instruments for thedevelopment of institutional, entrepreneurial andmaterial infrastructure for the growth anddevelopment of companies can improve theirdevelopment, and also the economic and generaldevelopment, and thus provide a more quality lifeof its inhabitants.

Keywords

• small and medium companies
• economic system
• transition and privatisation
• local community
• development