Growth and innovation of SMEs in local enterprise partnerships regions: A configurational analysis using fsQCA

Abstract

Local enterprise partnerships (LEPs) were introduced by the UK government in 2010 to promote local economic development. There is, however, a minimal pre-LEP baseline analysis concerning aspirations of small and medium-sized enterprises (SMEs) in LEP geographies. Employing Federation of Small Businesses 2010 data gathered before LEP policy activities began. This study examines growth and innovation intention of SMEs in LEP-defined areas. The analysis demonstrates how key internal SME strategic focus areas of staffing levels, training investment, research and development and online presence support their growth and innovation intentions. Results from fuzzy-set qualitative comparative analysis demonstrate that SMEs’ growth and innovation intentions and strategic areas that drive these intentions differ substantially between LEP-defined regions. This study contributes to knowledge providing baseline data outlining objectives and strategic foci of SMEs in different LEP areas, allowing LEPs to effectively evaluate programmes aligned with the requirements of their SMEs, potentially informing future policymaking.