Social Entrepreneurship and Development of Local Self-Governments – Evidence from Montenegro

Abstract

Main aim of the paper is to investigate the correlation between social entrepreneurship and development of local self-governments, in order to effectively and efficiently steer the potential of this form of entrepreneurship towards greater inclusion of socially vulnerable groups and improved development of local self-governments. Authors have developed a conceptual model that investigates the effects of social entrepreneurship on self-government development, as well as the impacts of self-government development on the perception and attitudes towards this type of entrepreneurship. The research results show that the respondents think that activities of social entrepreneurship have a positive influence on the development of local self-government; they also believe that main barriers to stronger development of social entrepreneurship in local self-governments are vague status of social enterprises, poor access to funding and a general lack of entrepreneurial spirit. The results provide an important contribution to policy makers to identify and understand the link between the development of social entrepreneurship and local self-governments.