The Role of the Private Sector in Regional Economic Recovery

Abstract

As the policies of the UK's new Coalition government unfold, it appears that the private sector will take the bulk of the responsibility for sustaining economic recovery. In order to understand the implications for local economies, this paper highlights areas of growth potential and the barriers that business owners are encountering. Based on a postal survey of businesses in the study area of Newark and Sherwood, a representative rural district in a middling region, research has identified that the majority of firms are still planning to grow, despite significant concerns over investment finance and working capital. Furthermore, 17% say that they will definitely recruit new full-time staff within two years, while a further 36% are considering doing so. This paper expands on these findings and also explores the skills needs and barriers that are preventing growth from being realized. The aim is to provide policy guidance to support the development of local economies emerging from recession and to consider the longer-term implications of the characteristics of local labour markets.