This paper highlights the features of the local economic development of Ukraine, analyzes current approaches to stimulating economic growth locally. The complex mechanisms to encourage regional and local development , the impact of financial and investment leverage the dynamics of economic growth at the local, regional level. A set of recommendations for implementation and optimal use of the resource potential of local development, creating a favorable institutional and legal framework of local development, promotion of cooperation at the level of local communities and regional cooperation , improving the performance of managerial influence local authorities for social and economic development of the area . Also, the article discusses the prospects and current concepts of local economic development abroad. Based on their analysis of the author identifies the requirements of modern local governance and emphasizes the need for focused development and use of internal resources of each community.