‘NORTH-SOUTH ’ CONTRASTS IN THE CHARACTERISTICS AND PERFORMANCE OF SMALL FIRMS

In recent years there has been considerable interest in spatial differences and inequalities in the United Kingdom. Empirical evidence has indicated that there are ‘north-south ’ contrasts with areas in the ‘south ’ of England having recorded higher levels of economic prosperity, rates of new firm formation, levels of disposable income and ‘wealth’, and a greater tendency to retain and create jobs. These contrasts have led some commentators in the media and the popular press to suggest that these contrasts are leading to the development of a ‘divided kingdom ’ rather than a United Kingdom. This study analyses the characteristics of small firms in the two locations and refutes a number of anecdotal tales and myths. The study draws upon data from 242 small firms in the Cranfield Small Firms Data Base (CSFDB) almost equally split between the ‘north ’ (51%) and the ‘south ’ (49%). Firms in the sample range in size from 1 to 181 employees, and from less than 299,999 to over f10 million sales turnover. Data was first subjected to univariate Chi-Squared Analysis and the results show both some clear differences and some surprising similarities. It is clear that some of the variations could be explained by industry differences. However, firms in ail locations demonstrated similarities in the pattern for example of: employment size, dependence upon single products or services, custome