Business promotion – an important and effective measure for development of rural regions

Abstract

The article analyses one of the support forms for business enterprises - local employment initiatives (LEI). This new measure, designed for people employment development, is an unconventional labour market instrument. 70 per cent of such kind of projects were implemented in rural areas in 2001 – 2004, where the creation of new work places would be problematic without the financial support from State budget and Employment Fund. The implementation of the projects assisted in creating 1906 new work places, while the investments constituted 37 million Lt. In some regions with predominating agriculture activities, high rate of economic effectiveness has been reached. Also considerable economy of employment fund and social benefits has been attained.