Business networks outside an industrial district

There is increasing interest in the role that business networking can play in regional and national economic development. While networking is an acknowledged characteristic of successful industrial districts, there is uncertainty as to how networking can be stimulated effectively in less favoured regions. This article reports New Zealand evidence from a survey of small-firm network behaviour and the impact of an intermediary agency - the Canterbury Business Advisory Agency - in seeking to assist network development. Small businesses were found to engage in various types of networking including information sharing, resource sharing and subcontracting. Little evidence of deliberate strategy about networking was found, however, and most respondents relied on a narrow range of contacts. Network promotion is identified as a way of assisting small-firm development and several ways assistance can be delivered are identified.