The Facilitation and Formalisation of Small Business Networks: Evidence from the North East of England

Business cooperation and networking have been posited as crucial elements within successful approaches to local economic development. With the aid of a case study from the North East of England, the authors explore issues surrounding network formation and facilitation. They raise questions concerning the nature of local business communities and the potential of local business networks to represent these communities legitimately and to reflect patterns of social and economic differentiation. They also demonstrate how attempts to promote or utilise local cooperation must include awareness of the implications of policy intervention. This is of particular importance in a political context where there are efforts to promote ‘local’ initiatives below the existing level of local authorities.