Spatial disparities in SME productivity: evidence from the service sector in England

Pattanapong Tiwasing, Yoo Ri Kim and Temitope Akinremi

Regional Studies, Regional Science, 2020, vol. 7, issue 1, 589-602

Abstract: This paper identifies the key determinants of spatial variability of productivity, focusing on small and medium-sized enterprises (SMEs) in the service sector across England. Due to the hierarchically structured data, multilevel analysis is applied to distinguish the effects of a firm’s internal variables and (sub)regional factors on productivity. Using cross-sectional data for 10,400 SMEs from the UK government’s Small Business Survey, 2015, the results show that firm-specific determinants significantly influence productivity. The findings also indicate that location, local enterprise partnerships (LEPs) and where firms operate play a pivotal role in determining SME productivity. In particular, at the LEP level, increasing labour supply, promoting local funding and improving broadband speed potentially enhance firm productivity.

Date: 2020
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DOI: 10.1080/21681376.2020.1854111

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