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Nowadays, in conditions of globalisation, and simultaneously with tendencies to decentralise management at the level of states and regions, individual territorial units (cities, municipalities, regions) are forced to adopt a more proactive, market-oriented approach to development. This process requires constant analysis of the environment and response to emerging changes; consideration of the offers of the competition and customer’s expectations. The purpose of this article is to show a market approach to managing the development of territorial units as a function of entrepreneurship. In particular, to show the relationship between the market orientation of local governments and entrepreneurship. This is understood, on the one hand, as a process of identifying and using opportunities and on the other, as a process of creating new enterprises, where special attention is paid to the emerging idea of territorial units as entrepreneurs. The latter concept appears increasingly frequently in the literature and colloquial language. Market orientation is an expression of the entrepreneurship of local government. Its impact on entrepreneurship on a given territorial unit is a new and important research area that requires exploration. The paper is based on the theoretical discussion using selected literature on the subject.

The Market Orientation of Local Governments as a Function of Entrepreneurship: a Theoretical Approach