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The Influence of Location on the Use by SMEs of External Advice and Collaboration

Author

Listed:
  • Robert J. Bennett

    (Department of Geography, University of Cambridge, Downing Place, Cambridge, CB2 3EN, UK, rjb7@cus.cam.ac.uk)

  • Paul J. A. Robson

    (Department of Geography, University of Cambridge, Downing Place, Cambridge, CB2 3EN, UK, p.j.a.robson@abdn.ac.uk)

  • William J. A. Bratton

    (Department of Geography, University of Cambridge, Downing Place, Cambridge, CB2 3EN, UK, will.bratton@spectrumstrategy.com)

Abstract

This paper provides an analysis of the influence of location on the extent of use and impact of external advice and collaboration on small and medium-sized enterprises (SMEs) in Britain. The analysis indicates that for private-sector advisers (accountants, consultants, etc.) and collaboration with suppliers and customers, the intensity of use does not vary significantly with location in most cases. Only the input of business friends and relatives is strongly locationally constrained, indicating the importance of personal trust processes operating in a different way from other influences. EU Structural Fund status of an area also has few major effects on use of private-sector advice. However, the impact of external advice and the extent of local collaboration between similar firms are influenced by location, with impact generally increasing with the size of business concentration, density and closeness to a business centre; i.e. there are positive effects of urban location and agglomeration economies. For public-sector support agencies (such as the Small Business Service Business Link, TECs/LECs, enterprise agencies and also chambers of commerce) the reverse is generally true. Levels of use are locationally influenced, but impact is not. Use tends to increase in EU-assisted areas, and in areas with lower levels of business concentration. This applies to most local agents, but for regional development agencies there is an additionally strong effect of highest focus of use and impact in the most rural and peripheral areas. Thus public agents appear generally to be most used and have greatest relevance to SMEs in more peripheral areas where they fill gaps in the market created by agglomeration effects.

Suggested Citation

  • Robert J. Bennett & Paul J. A. Robson & William J. A. Bratton, 2001. "The Influence of Location on the Use by SMEs of External Advice and Collaboration," Urban Studies, Urban Studies Journal Limited, vol. 38(9), pages 1531-1557, August.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:9:p:1531-1557
    DOI: 10.1080/00420980126671
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Robert J. Bennett & Paul J. A. Robson, 1999. "The use of external business advice by SMEs in Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(2), pages 155-180, April.
    3. Robert J. Bennett & Daniel J. Graham, 1998. "Explaining Size Differentiation of Business Service Centres," Urban Studies, Urban Studies Journal Limited, vol. 35(9), pages 1457-1480, August.
    4. John R. Bryson, 1997. "Business service firms, service space and the management of change," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 9(2), pages 93-112, January.
    5. Robert Bennett & Paul Robson & William Bratton, 2000. "The Influence of Location on the Use by SMEs of External Advice and Collaboration: Detailed Econometric Estimates," Working Papers wp190, Centre for Business Research, University of Cambridge.
    6. E Vatne, 1995. "Local Resource Mobilisation and Internationalisation Strategies in Small and Medium Sized Enterprises," Environment and Planning A, , vol. 27(1), pages 63-80, January.
    7. Ron Martin & Peter Sunley, 1996. "Paul Krugman's Geographical Economics and Its Implications for Regional Development Theory: A Critical Assessment," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 259-292, July.
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    2. Elif Bascavusoglu-Moreau & Qian Cher Li, 2013. "Knowledge Spillovers & Sources of Knowledge in the Manufacturing Sector: Literature Review & Empirical Evidence for the UK," Working Papers wp451, Centre for Business Research, University of Cambridge.

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