One of the defining features of the Government’s Industrial Strategy is its ambition to rebalance economic growth across the UK. The UK Shared Prosperity Fund (UKSPF) will be essential to achieving this ambition. For the fund to have the greatest impact, policymakers must first understand the profile and needs of smaller businesses in those parts of the UK that are struggling the most. In this report, we call them Less Favoured Areas (LFAs). The purpose of this research is to shine a bright empirical light on the smaller businesses in LFAs, to inform the design of a UKSPF.
Our research shows that smaller businesses in LFAs have no lack of business ambition and personal ambition to thrive and grow. Indeed, they stand out relative to other areas for wanting to make a meaningful contribution to their wider community. However, they often have a different structure and greater likelihood of occurrence in particular sectors that tend to face more challenges.