The municipalities of Latvia are different in terms of business development level. Latvia’s regions are grouped into clusters based on several indicators: number of economically active individual merchants and commercial companies per 1000 capita, territorial development index, and proportion of working-age population. In addition to the business indicators, the following tourism indicators were selected: number of recreational establishments, number of bedplaces, number of individual rooms, number of farms and individual merchants making use of culinary heritage. All these indicators are statistically significant for clustering municipalities. The clustering was performed by employing K-Means clustering and using the data processing programme SPSS. All Latvia’s municipalities were divided into four clusters based on the business development level and the level of exploitation of tourism infrastructure and culinary heritage. The analysis results enable conclusions to be made that a positive correlation exists between the business environment development level, and the level of use of tourism and culinary heritage. Culinary heritage is an important additional possibility for fostering business and economic growth in Latvia’s municipalities. A linear multifactor regression equation was obtained, which associated the revenues of the operating budget of a municipality with the following statistically significant factors: population density, territorial development index, expenditure on economic activity development, number of economically active entrepreneurs and commercial companies, number of tourism establishments, and number of enterprises dealing with culinary heritage. The analysis of regression equation coefficients points to the positive effects of all the factors included in the equation on the revenues of the basic budget of a municipality.

Marvejols is a small town located in Lozère (France). Traditionally, the region was poor with an agricultural oriented economy. However, by the 1960s a new type of business was launched: the residential care facilities for disabled people, especially in relation to Jacques Blanc, a key person in the organization and development of this business. This economic activity brought jobs and new attractiveness, counterbalancing decline in traditional sectors. Nevertheless, currently, situation is less favourable, and the local players try to find out a new strategy, particularly in relation to diversification. In this study, our main aim was to understand conditions of starting and growing of this business. Moreover, we would like to understand current fragilities and attempts to adapt the economy of the territory. In this way, our students and we have chosen this area in relation to the economic and historical weight of its activity. The organization of field trips and survey was conducted in a comprehensive approach perspective. Therefore, we took account parameters working in this territory, such as strategies, psychologies (individual and collective), networks and identities. Human dimensions are strong, especially in discourses, and our main result is a better understanding of the local situation, with comparisons to close cases (Corrèze, Creuse). Furthermore, the quality of the geographical analysis provides working relations with the stakeholders.

The changing economic and social situation in the regions leads to the changing understanding of the potential which exists in the countryside. This research is based on the idea that farmers operate in close neighbourhood with the local communities and therefore they may hold a potential to start innovation processes in rural regions as agents of change. This may happen individually or together with the local community. Farmers are active in acquiring new knowledge and experience through collaboration with advanced innovation centres in research laboratories and universities, and sharing with the local community, thus making these innovations open. The success of innovators comes in line with the collaboration and therefore the defined three key factors of ‘innovating together’ in this research are: first, the shift from technical to organizational innovations; second, the shift from sectorial to territorial rural development strategies; third, the size of farms and rural enterprises due to the limited number of employees. Theoretical findings are followed by empirical investigations from representative data collected in Lithuanian farms in 2017, supported with relevant statistical analysis. Research results show that the potential for ‘innovating together’ in Lithuanian farms is rather weak when taking into account all three factors. However, there are reasons behind this which give insights for future developments in the field.

The paper aims at examining the levels of social cohesion and socio-economic dysfunctionality in former State Agricultural Farms (post-PGR) areas and at assessing the possibilities for initiating bottom-up actions, and for participating in the creation of mechanisms for local development. Data used in the study was obtained in multimethods approach, i.e. mainly during a questionnaire survey, in-depth interviews and observation concerning the financial situation and the social environment (social problems and cohesion), that is, the elements predicted to be the key factors obstructing effective corrective actions within local development. We have demonstrated that post-PGR areas should be treated as especially problematic not only because of their economic dysfunctionality, but mainly because of the complex social problems they experience (lack of local ties, hostility, aggression between neighbors). Such a difficult environment requires substantial interference which should take into account the problems specific to the population. The threat resulting from the heterogeneity of such communities should be a significant factor shaping the perception of local development problems.