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

2. Additionality?

3. Protectionism?

4. Local institutions?

5. 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.

6. 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), 277-281.

7. 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%

8. 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.

9. …find out more www.newweather.or g www.friendsprovide ntfoundation.org