Location, Location, Location
Where a business operates is absolutely critical to its performance and actually in some of the research that the CBI has done, it’s really busted the myth that for a fast growth business you need to be located in London. Actually 70 per cent of scale up businesses are located outside of the capital, but what we do see that matters is the formation of clusters in the economy. So whether that be the gaming industry which is developing in Scotland or the creative industries in the north-west or high tech manufacturing in the Midlands, you can see these groups of businesses that are working together and locating near each other so that they can share best practice. They can work together and share costs and enjoy economies of scale in that way.
And actually in terms of devolution this is an opportunity for local areas, local enterprise partnerships, local authorities, to really understand their economies, understand what their strengths are and formulate strategies that build around it. One of the issues with that is that we’ve seen a lot of change in recent years and some businesses have lost a bit of confidence in terms of the stability of local institutions, say for example Business Link was a support services which was disbanded a few years ago. Then we had the Business Growth Service which is also no longer in existence. Now we have growth hubs which are aligned to the local enterprise partnerships in England and it’s important that we stick with that particular model now and enable them to develop a brand which businesses have confidence in.
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