Naslov
Local Governance and Supporting SME's - Fiscal Framework and Transfers from/to Business Community

Autori
Kružić, Dejan

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Selected papers from four International Conferences "Business and employment" held on 2002-2005 in Peja / Prof.dr.sc. Isak Mustafa - Priština : Finance Institute of Kosova-Friedrich Ebert Stiftung, 2006, 614-628

ISBN
9951-8698-0-7

Skup
The Third International Conference on "Business and Employment - The Role of Investments in Business Development and Employment Generation in Kosova and other Transition Countries"

Mjesto i datum
Peć, Kosovo, 19.11.2004. - 20.11.2004

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
local governance; local investments; SMEs; business supporting

Sažetak
Political and economic liberalisation has aroused further interest of economies in transition in shifting development from the state level to lower levels, especially in big cities. The analysts, representatives of central government and local authorities, recognise that the lower level authorities have an important role in social development-which gradually influences the changes and leads to abandoning the standard approach to development based on emphasising the role of central government in favour of local initiatives and local development. In further development of local governance, which aims at meeting the citizens' needs in a more efficient way, the problem of local developmental activities aimed at increasing the fiscal capacities of cities imposes itself as particularly significant. Since the SMEs seem to be one of the most propulsive sectors of Croatian economy, significantly contributing to keeping the level of current employment and reducing unemployment, this paper attempts to answer the following research question: What are the local governments undertaking and what are they going to undertake in the future concerning the development of SMEs and at the same time their own local economic development? This paper aims at answering this question using the example of a big Croatian city. The influence of SMEs on generating local budgetary revenues and the contribution of SMEs in public expenses has been established. The paper analyses and presents 15 different city revenues which the city budget owes to the SMEs sector and additional 11 types of city revenues which the citizens (particularly SMEs employees) pay in the city budget. This approach has enabled the quantification of overall effects of SMEs on the local budget. Taking the city as a local entrepreneur that is trying to increase its autonomous non-tax revenues, the paper makes a research into the commitment of local government to stimulating of entrepreneurship and strengthening the private initiative, as well as into the importance of local spending and city investments in using the capacities of SMEs. The paper suggests that duality of SMEs, as an important financier of local needs and as a consumer of the local budget funds, can be a basis on which a development-oriented local government should develop a supportive local policy for the sector of SMEs.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA