Abstract In the modern era, the rapid development of tourism has become one of the leading factors in shaping the global economy, social life, and cultural values. Owing to the widespread application of modern tools and technologies, tourism functions not merely as a form of recreation and entertainment but also as a complex field of activity with multifaceted social, economic, and environmental impacts. Since tourism is closely linked to the diverse and ever-growing social, cultural, spiritual, and economic needs of human beings, both natural and anthropogenic resources are widely utilized to meet these demands. In today’s world, tourism and recreation activities are not only considered sources of economic income but also viewed as key components of social stability, cultural integration, and regional development. This sector plays a crucial role at almost all administrative and hierarchical levels, within the socio-economic structure of regions and in systems of local self-governance. As a result of tourism development, infrastructure in regions expands, transportation and service sectors modernize, investment attractiveness increases, and social welfare indicators improve. This article examines the role of small entrepreneurship and local self-government bodies in the utilization of tourism and recreational resources in the Nakhchivan Autonomous Republic of the Republic of Azerbaijan.