Letting businesses die is a crucial part of boost productivity in an area, an investigation into small businesses suggests CREDIT: GETTY
Sizeable postcode-level disparities in productivity have been revealed by an in-depth study of small businesses in the UK.
West Somerset has emerged as the least productive area for SMEs, with companies based there generating an average of just £56,500 of turnover per employee. This compares with £1.45m in London, meaning small firms in the capital are 26 times more productive than some of their rural counterparts.
The study, a joint venture between Nesta, the innovation charity, and Sage, the cloud computing company, was intended to highlight the stark disparity between regional levels of productivity by gathering and analysing local authority level data.
Sizeable postcode-level disparities in productivity have been revealed by an in-depth study of small businesses in the UK.
West Somerset has emerged as the least productive area for SMEs, with companies based there generating an average of just £56,500 of turnover per employee. This compares with £1.45m in London, meaning small firms in the capital are 26 times more productive than some of their rural counterparts.
The study, a joint venture between Nesta, the innovation charity, and Sage, the cloud computing company, was intended to highlight the stark disparity between regional levels of productivity by gathering and analysing local authority level data.
[“Source-telegraph”]
