Economies of Coordination: Unlocking growth and opportunity for young people in Britain’s left-behind neighbourhoods

Britain’s so-called “left-behind” neighbourhoods are caught in a damaging cycle of weak growth and limited opportunity, with young people – especially those from low-income backgrounds – facing rising barriers to good work, skills and progression.

This report, supported by EY Foundation, warns good growth is not just being held back by a lack of investment, but a failure to connect institutions within the same community. The research instead proposes creating “economies of coordination”: systems and linkages between small employers and local actors to pool resources and boost growth. By sharing data, expertise and investment with councils, educators and other partners, SMEs can overcome barriers that are difficult to tackle alone and create stronger local growth.

The potential impact is significant. Demos estimates that stronger local coordination could:

• Boost UK growth by up to £28bn each year, in part through generating 1.9 million additional management apprenticeships
• Increase SME revenues by up to £40bn each year
• Raise productivity across small businesses by up to 9%