THE ROLE OF FIRMS AND ENTREPRENEURSHIP ON LOCAL DEVELOPMENT.

The present paper considers and analyzes the role of management and entrepreneurship on the firm and region sustainability. This relation was explored in terms of managers' behaviour related to three aspects of sustainable development, namely, economic, social and environmental. Through a questionnaire survey of 251 micro, small and medium firms in Vale do Sousa region located in the Northern Portugal, it was discovered that, contrary to what most of literature presents, managers are putting in first place the environmental aspect of sustainability, followed by the social aspect, and the economic as the last one. These results lead to a characterization of firms as being sustainable, but with a risk-averse and non innovative behaviour on the part of the firms' management. [ABSTRACT FROM AUTHOR]