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

Abstract

We are witnesses of the change in economic system, and the transition from cooperative to market economy and the era of private capital. Major business systems that used to be the foundation of development mostly do not work today. The privatisation of the companies did not give any results. Small and medium companies should be a replacement for the major systems and employ a great number of the workers that have been left unemployed. Central authorities have done very few things for the support and development of small and medium companies. The change in the role of local community has also happened, and it has a key role in providing more quality living, through the development of economy of the growth and development of small and medium companies and decrease in unemployment. The increase of employment can be achieved by increasing the number of companies or by expanding the existing ones. Local communities should take various measures to establish a beneficial environment for their development, including various programs, supports, allowances, facilities for potential investors, etc. It is necessary to ascertain the models of cooperation and support with the aim of their development and increase in capacities. The aim of this paper is to show that a local community which uses the instruments for the development of institutional, entrepreneurial and material infrastructure for the growth and development of companies can improve their development, and also the economic and general development, and thus provide a more quality life of its inhabitants.