Many small towns and communities are struggling to sustain their competitiveness in the face of increasing globalization. Yet, through entrepreneurial supply chains, some communities are organizing themselves to forge local solutions to their global challenges. The essence of entrepreneurial supply chains is its ability to facilitate alignment of all participants in the chain, eliminating moral hazard and opportunism risks. It is argued that this governance system and an ability to protect the common assets from infringement by outsiders are necessary for the success of these solutions. The research uses Bagòss cheese, produced in the small Italian village of Bagolino, to illustrate the characteristics of entrepreneurial supply chains and test the effect of the identified necessary conditions for their successful implementation.