Local Development and LEADER Funding in Poland: Insights from the Wielkopolska Region

LEADER is a European Union program designed to engage the energy and resources of people and local organizations in contributing to the development of their rural areas. Given the uniqueness of the program—particularly its bottom-up, incentive-based approach—it is of crucial importance to determine the local conditions affecting fund absorption. This study utilizes factor analysis and stepwise multiple regression to assess the influence of the local rural development conditions on the level of funding and rural residents’ participation in the LEADER program in Poland, using the example of the Wielkopolska region. This research spans two consecutive EU funding periods: 2007–2013 and 2014–2020. Our findings reveal that residents in areas with higher developmental needs and lower levels of socioeconomic development display a greater proclivity to access LEADER program funds. Consequently, the LEADER funds in the Wielkopolska region are directed towards areas in genuine need of reinforcement. These results contradict previous research on selected EU rural development measures under the second pillar of the CAP, as well as specific LEADER implementation areas. Furthermore, our findings indicate that entrepreneurship and cultural activities play a pivotal role in stimulating bottom-up initiatives within rural communities.