Management Theory and Studies for Rural Business and Infrastructure Development, Volume 14

Business development in rural regions

Rimantas Dapkus


Modern-day management theory and practice have recently got a new object – cooperation
of public and private sector, the quality of which affects the development of individual regions and
the state itself, as well as the growth of welfare. The aspects of investment climate are examined in
theories of various scientists, but the direct impact on regional business development by business
support infrastructure has not been investigated. The research of region’s institutions activities impact
on improvement of business development have been chosen. After having justified the importance
of business development as the main indicator of country’s and region’s economy growth,
having examined the theories of regional development, origins of regional disparities, having evaluated
the role of state in the policy of business development promotion, the emphasis has been placed
on the role of activities of region’s administrative institutions (county governor’s administration,
district municipalities and their public and non-governmental organizations) and an extensive regional
business support network, which has been chosen as the research object of this work.
The aim of this work was to evaluate regional public administration and other institutions’
activities which have impact on business development in the rural regions and disclose the main
triggers of this process. The methods used in this work are as follows: analysis of scientific source
texts, publications, secondary source texts and legal documents, questionnaire survey, comparative
analysis and synthesis of findings, grouping and graphical presentation of research data, deduction
The theoretical analysis of regional development, its impediments and contributors and practical
research of regional institutions activities and its factors as well as research of assessment of
these activities for the business development have sustained this work’s hypothesis that business is
unevenly developed in different regions and business development is not secured due to unsatisfactory
public administration and other institutions actions mainly in rural regions.

Keyword(s): business development in rural regions, triggers for business development, role of the public administration institutions’ for business development

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.