Local economic development is not simply or necessarily a reflection of a national process of development and progress in a given locality. What really characterizes and reinforces the process of local economic development is the prominence of local actors in the formulation of strategies, as well as in decision-making, in the implementation of new projects and innovative initiatives, in leadership,[2]​ etc.[3]​.

One of the fundamental actors in local economic development is the local government, generally understood as the government of the municipality, commune, canton, district, parish or similar denomination of the lowest level of government, being fundamental the capacity it has to develop local economic development policies.[4]​.

Therefore, it is a process of economic development that is based on the autonomy and dynamism of local agents, who in some cases even contradict, discuss and oppose dominant thinking. According to the Pólis Institute") (2005), in Brazil, "the issue of local economic development has taken on a certain relevance in recent years, as a consequence both of the many local concerns focused on this issue, and due to a marked degradation of the social situation, and in many cases together with the abandonment or pessimism regarding other initiatives undertaken on a larger scale. To this extent, the local is observed as the last trench, as the last reserve, in order to promote economic development and the improvement of the social situation, despite the lesser existing powers in this area, and despite the also lesser existing capacity to oppose general trends and national macro-politics."[5]​.

In many cases, an intelligent action, or an undertaking undertaken seriously and with perseverance, no matter how insignificant they may initially seem, can contribute to reducing local poverty, and/or local unemployment, and/or some other negative characteristic.[4] One of these actions could be, for example, the granting of microcredits.

Creator of concept, and pioneer in terms of implementation worldwide, the Grameen Bank of Bangladesh today already serves more than 6 million people, mostly women. The creation of this venture is due to Muhammad Yunus, Nobel Peace Prize winner in 2006.[6]​.