People Powered Prosperity David Boyle 9 July 2015 New Weather Institute/David Boyle

Additionality?

Protectionism?

Local institutions?

Small firms impact “Our research shows that regional economic growth is highly correlated with the presence of many small, entrepreneurial employers—not a few big ones." Glaeser, E.L. and Kerr, W. (2010), ‘The Secret to Job Growth: Think Small’, Harvard Business Review, July.

Ownership impact “Economic growth models that control for other relevant factors reveal a positive relationship between density of locally owned firms and per capita income growth, but only for small (10-99 employees) firms, whereas the density of large (more than 500 workers) firms not owned locally has a negative effect.” Fleming, D.A. and Goetz, S.J. (2011), ‘Does Local Firm Ownership Matter?’, Economic Development Quarterly, August, vol. 25, (3),

Market failure? UK distribution of value- added (OECD figures) Large business SMEs UK bank investment in SMEs (BIS figures) Large business SMEs 49%51% 89% 11%

What next? Joint team at the Treasury or Cabinet Office between very local economic practitioners and civil servants. Link up with a university business department with an expertise in the area. Hold the reins for a dialogue with the banks about their own potential role in funding and shaping an effective local lending infrastructure.

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