Spatial Disparities in SME Productivity: Evidence from the Service Sector in England

Pattanapong Tiwasing, Yoo Ri Kim, Temitope Akinremi

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    6 Citations (Scopus)
    50 Downloads (Pure)


    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.

    Original languageEnglish
    Pages (from-to)589-602
    Number of pages14
    JournalRegional Studies, Regional Science
    Issue number1
    Publication statusPublished - 9 Dec 2020

    Bibliographical note

    © 2020 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

    This is an Open Access article distributed under the terms of the Creative Commons Attribution License (
    licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


    The work was supported by the Economic and Social Research Council (ESRC) Productivity Insights Network under Grant [RES/0576/7203].


    • SME Productivity
    • Business Services
    • LEPs
    • Multilevel Analysis
    • England
    • multilevel analysis
    • business services
    • SME productivity

    ASJC Scopus subject areas

    • Geography, Planning and Development
    • Economics and Econometrics
    • Sociology and Political Science


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