Ignazio Cabras

The Impact of Local Authority Procurement on Local Economies The Case of Cumbria, North West England

Public procurement has a significant impact on economic development in regions and localities. Previous research in the UK has focused on variations in government spending across regions, the effects of competitive tendering processes and EU State Aid rules on regional economies. Empirical studies of procurement at the level of local authorities have received less attention. Increasing pressure to be ‘efficient and effective’ in use of public resources can contradict the need to support local communities, particularly through a period of economic downturn. Until recently, there has been a paucity of relevant data at a local level to examine the impacts of procurement. This paper analyses the combined patterns of spend of eight Local Authorities in the County of Cumbria in North West England. The characteristics of the supply base are investigated using a two-stage survey of businesses that secure local authority contracts. Results show the characteristics of suppliers and their level of dependency on local authority contracts. Managers’ evaluation of the advantages and disadvantages of contracting with the public sector are also analysed. The findings suggest that many small and medium enterprises (SMEs) in Cumbria rely upon local authority contracts for business stability. The interviews confirm the vulnerability of SMEs to the current trend towards more formal approaches to public procurement and the use of a narrow definition of ‘value for money’. The paper concludes by considering the implications of the findings for the extent to which local authorities have retained a capacity to act to support local economic development.

Industrial and provident societies and village pubs: exploring community cohesion in rural Britain

In the UK, pubs are often the nodes and centres of the local social network. Particularly in villages and rural areas, pubs play an important role in stimulating community cohesion and social capital by enhancing socioeconomic activities, such as communal initiatives and business activities, within communities. Despite this, there has been a constant decline in the number of British pubs during the past decades. The factors influencing this decline are many and diverse: the rise of pub chains and theme pubs which target a more commercial type of custom, the result of progressively tougher drink–driving laws, rising prices and alcohol duties, the increased popularity of home entertainment, and the smoking ban. Since village pubs work as a network tier for the entire area, their disappearance often means the disappearance of major centres of social aggregation. This also has a significant impact on rural economies, given the importance of these businesses for local supply chains. The creation of Industrial and Provident Societies (I&PSs) in villages and small communities may represent a valid way to rescue a number of village pubs from closure. An I&PS is an organisation carrying on an industry, business, or trade, either as a cooperative or for the benefit of the community. This paper discusses the functioning of I&PSs and their potential with regard to pubs in rural areas by presenting original data obtained from primary research, including interviews held with owners, managers, and customers of village pubs. In addition, the paper provides case studies of communities who used an I&PS to save their local pubs and assets, and explores how this solution may help villagers to keep their centres of social aggregation economically viable and sustainable. It is concluded that I&PSs can represent a valuable solution for many rural communities. It is also concluded that the level of community cohesion among villagers, the investment required for setting up the I&PS, and the availability of financial grants and public sector support all have an important impact on their development.

Microbrewing and entrepreneurship: The origins, development and integration of real ale breweries in the UK

This paper reports on an exploratory two-stage study of microbreweries in the UK. The first stage comprises an analysis of data from the Small Independent Breweries Association to offer an aggregate picture of the sector. The second stage reports on a qualitative study of the experiences of 14 microbreweries. The findings from the fieldwork show that the UK microbrewing sector is growing, that competitiveness within the brewing establishment is based on artisan manufacture, provenance and diversity rather than price, and that the sector is contestable but operates as a competitive fringe within the greater industry. The study illustrates that microbreweries can contribute to local economies and that, because of the innovation, diversity and growth in the sector, entrepreneurship is in evidence. While saturation seems a threat, the evidence presented here suggests that UK microbrewing is a healthy sector, with the prospect of ongoing growth and contribution.

Village pubs as a social propellant in rural areas: An econometric study

There is no place like England to witness the role of pubs as a social networking hotspot. Social networks lie at the foundations of most of the social and economic interactions of individuals. The aim of this paper is to assess the importance of pubs as natural locations for the development of social networks and how their presence affects the socio-economic activity of a given area or region. The econometric analysis conducted on rural parishes in Cumbria, a peripheral county in Northern England, reveals that village pubs have a positive influence on the socio-economic activity of local communities.

From reviving tradition to fostering innovation and changing marketing: the evolution of micro-brewing in the UK and US, 1980–2012

Abstract The purpose of this article is to explore and examine the impressive growth of small and micro-breweries registered in the UK and US from the early 1980s. While the majority of British and American breweries continue to operate in spatially restricted areas and niche markets, a few businesses expanded significantly in terms of production and turnover, gradually acquiring larger shares of the market and competing with multinational producers at home as well as abroad. The cases of BrewDog and Sierra Nevada, used as case study examples in this article, provide an original account on how once-upon-a-time micro-breweries grew into well established companies by pursuing aggressive strategies in terms of marketing and innovation respectively.

Community Cohesion and Village Pubs in Northern England: An Econometric Study

Mount M. and Cabras I. Community cohesion and village pubs in Northern England: an econometric study, Regional Studies. Pubs in England represent an important locus for regional development and rejuvenation, particularly in rural areas where they act as hubs for social aggregation and economic activity. Generally, village pubs are regarded as complementarities to other local services and amenities that exist within the area, such as sporting events, volunteering and charity initiatives, as well as business activities. This paper provides empirical support for this proposition by estimating the impact of pubs on an index measure of community cohesion. Using data from 715 rural parishes located across Northern England, the paper demonstrates the importance of pubs for maintaining rural areas in these regions.

Embedded models of rural entrepreneurship: The case of pubs in Cumbria, North West of England

There has been a significant decline in the number of pubs in rural areas of the UK in the past decade. The disappearance of these places has a dramatic impact on rural communities, as village and rural pubs work as a network tier for the entire area by providing opportunities in terms of community engagement, business connections and employment. The study presented in this paper investigates issues related to the decline of pubs in Cumbria, North West of England. The authors examine data gathered from secondary sources and primary research, including interviews with pub owners, managers and customers. This enables detailed analysis of factors of success and failure including initiatives taken by communities to conserve their pubs. Combining a community focus with economic and entrepreneurial approaches presents the value of village pubs in a new light, offering suggestions for alternative means of supporting them. Results indicate that more active involvement from local communities and public sector bodies is required to ensure the future of pubs and other rural assets that provide value to their communities.

A Phylogenetic Classification of the Video-game Industry’s Business Model Ecosystem

Since 1990, Business Models emerged as a new unit of interest among both academics and practitioners. An emerging theme in the growing academic literature is focused on developing a system that employs business models as a focal point of enterprise classification. In this paper we attempt a historical analysis of the video game industry business model evolution and examine the process through the prism of two-sided market economics. Based on the biological school of phylogenetic classification, we develop a cladogram that captures the evolution process and classifies the industry’s business models. The classification system is regarded as a first attempt to provide an exploratory and descriptive research of the video game industry, before attempting an explanatory and predictive analysis, and introduces a system that is not governed by the industry’s specific characteristics and can be universally applied, providing a map for researchers and practitioners to test organisational differences and contribute further to the business model knowledge.

Beer, brewing, and business history

Abstract This editorial introduces the eight articles in the special issue on ‘Beer, brewing and business history’. Following the BEERONOMICS conference held at the University of York, 2013, and the subsequent approval of the editorial board of Business History, we received many submissions discussing beer, brewing, and their importance to business history (broadly defined). In this editorial we provide a brief overview of the historical development of beer and brewing; explain the appeal to business historians of the principal themes which have emerged in the historiography of this industry, and provide a short introduction to the articles accepted for publication in this special issue.

Nuclear Economies and Local Supply Chains in Peripheral Areas: The Case of West Cumbria

The aim of this paper is to fill the gap in data relating to local supply chains in the proximity of nuclear sites by investigating the site of Sellafield in West Cumbria, UK. Using information obtained from invoice data provided by Sellafield Ltd, the site-licenced company, and from primary research, the authors explore the relevance of nuclear procurement within the area, by evaluating levels of economic leakage and seepage resulting from suppliers’ subcontracting and work carried out locally. The study shows that the presence of a nuclear site has a crucial role for the surrounding area and for its economy. The results indicate a significant level of financial retention in the area with regard to work carried out in-house and local subcontracting at a first tier. In particular, the results identify cash flows related to second-tier suppliers located in West Cumbria, demonstrating that about a third of the total work carried out or subcontracted at the nuclear site stays in the area. These findings underline the significant impact of Sellafield on the West Cumbria economy and, more generally, provide an overview of the importance of nuclear sites for local supply chains in peripheral and remote areas.