ABSTRACT
Local economic development is defined in this context as a subnational action, taking place within the context of a local labour market and often covering an area greater than one local government jurisdiction, but with activity focused on the specific problems of locations requiring development or regeneration. Public choice theory provides the most direct route to understanding business collective action in the economic development field. The chief motives for internal action by businesses, the main contributions a firm can make to economic development, are to remain competitive to retain and expand business, to continue growing. Recruitment policy can be targeted to favour disadvantaged groups or localities; this can be combined with or separate from training and work experience programmes, and may extend to making available surplus training capacity, premises or facilities for local community use. Sub-contracting, purchasing can be a major stimulus to the local economy, particularly if supplemented by early warning of requirements to new businesses, community business ventures.
