Inter-regional mobility of entrepreneurial SMEs

Expanding entrepreneurial enterprises move from high-cost (congestion, wages and rent) locations where they innovated to low-cost (smaller, less agglomerated) places suitable for standardised production. Net inter-regional relocations of British SMEs are predicted in part by this development pattern. SMEs that relocate are more productive, relatively larger and younger, as well as more probably initially located in London and the South East (core locations). These fast-growing businesses become even more productive and employ even more workers after moving than regionally immobile SMEs. In this respect, the UK regional core supports the periphery through a market process. Relocation is also a strategy for contracting enterprises, but not necessarily a helpful for smaller companies.