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The word ‘business' is mentioned almost 300 times in the Government's sub-national review – about three times a page. And this change of emphasis is as important as it is welcome. So, why and how should businesses be engaged in the economic development agenda? And who should do it? Making places better is about making them more productive and competitive. And, it is businesses getting better at what they do which drives productivity growth. More fundamentally, the worklessness challenge can only be met by getting people into long-term, sustainable employment – something else which is only deliverable by productive businesses. A key and often-overlooked point about businesses, of particular importance to local authorities, is that they are located locally, and this matters because the last decade or so has seen a disconnect between strategies which are ‘national' and ‘regional', and the implementation of them, which can only be ‘local'. Our economy is a business – ‘UK plc' – and business knows strategy is hierarchical. There is a strategy for the business as a whole, for its subsidiaries and for each plant. And each of these strategic levels should support one another in a coherent, logical fashion. Strategy for UK plc has been logical and coherent, nationally and regionally – but the local has largely been ignored. The SNR changes all that, and we now stand a good chance that the economic development ‘loop' might be closed for the good of UK plc – and particularly the workless. The role of the economic assessment is hugely underestimated. The assessment is the building block, the foundation on which strategy must be based. The vision and strategy for your place is only as good as the assessment you make of it. Is this a statement of the blindingly obvious? Maybe, but is your assessment capacity really as strong as it needs to be? And are the people undertaking it senior and experienced enough? Think of the assessment as a painting of your place. When you and businesses in your place look at it, both of you should be able to say ‘yes, that's us – that's here – that's where we are'. Your assessment must be a market-oriented, jargon-free representation of the economic landscape which businesses recognise. It must not be abstract art, it must be the bowl of fruit with real bananas in it! Will your local businesses be bothered to read the assessment? They might not, but that really is not the hurdle to be overcome first. The first hurdle is persuading businesses even to pick the thing up. That's why the look and feel of your assessment is so important, and why technology has a role to play. Your economic assessment has to be accessible. It has to look good and be available across all formats – paper-based and online. A lengthy, wordy document simply will not do. The look alone will suggest a tedious read, and you will not get your businesses past the first base. Think of the economic assessment as a product – you must persuade local businesses, first, to try it, and then buy it – which means ‘read it'. Well, at that point, you can engage them in the strategy to make your place better. If that involves selling your place to outsiders – nationally and globally – your businesses have now become ambassadors for you. They can talk knowledgeably about your place – perhaps even speak evangelically about it. And because your assessment is ‘accessible', outsiders can be pointed in its direction, also to be persuaded of the benefits of locating in your place. The business of engaging business has to involve everyone – both large and small firms locally. This is not the exclusive domain of economic development professionals, or politicians. It's about everyone playing a part appropriate to their role and position. Engaging business in economic development captures most of the issues we face – worklessness, productivity and competitiveness. If we can get it right, we all benefit. Paul Miller is chief executive of economic development consultancy Gavurin. See www.gavurin.com

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WHITEHALL

Closing the loop

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