Two Examples of Local Economies
Last time I wrote about what I don’t mean by the local economy and next time I’ll suggest a definition. In any city you will find several local economies (and arguably the city is itself a local economy). It is important to understand for any place the local economy exists; it can’t not exist. It might be strong or weak but it’s there.
I live in Sheffield in the UK and I can think of several local economies within the city. Today I shall describe two of them.
Hunters Bar
Shops on Sharrow Vale Road, Hunters Bar
This area is strategically placed between the inner city and affluent leafy suburbs. It is on good bus routes and has plenty of on-street parking. It’s the sort of place where you might go on an afternoon off work.
There are a couple of good parks and lots of small shops. There are very few of the big chains, just one supermarket and almost all the other shops are small traders. So, you can visit the parks and then get a coffee and do some speciality shopping. The shops are mostly speciality food, arts and crafts, fashion, etc.
Some of the shops are outlets for local artists and craftspeople and so they support a home-based economy too. The area is popular with students and ex-students and so there are a many self-employed people living there. Some play a direct role in the local economy, by using the shops as outlets. Others play an indirect role by shopping and so keeping money earned outside the area circulating locally.
This seems to have sprung up spontaneously over many years and contrasts with less attractive shopping centres in the more affluent areas. Whilst these may include small traders, they are mostly smaller and so tend to serve a local neighbourhood and not attract visitors from outside.
Why is Hunters Bar as success? It’s hard to be certain but I suspect it is largely lower costs and the proximity to more affluent areas. Being on a major route means many people will pass through the area between home and the city centre.
Spital Hill
Shops on Spital Hill
This area is notorious for being in precipitate decline for probably 40 years! The infrastructure is poor and the area appears run-down and seedy. This is not the fault of the traders in the area who have in recent years experienced something of a renaissance.
In November 2 years ago the biggest Tesco supermarket in Europe opened on its doorstep. The predictions were that the 6 or so local small grocery shops would close. Despite Tesco’s best efforts they’re all hanged on. There are loads of small cafes and gift shops. Are they doing well? Probably not brilliantly but they’re hanging on and most of the traders have been around for several years.
This appears to be a substantially Islāmic economy. I understand many people work there for minimal or no wages. Keeping the family business going is more important at this stage than personal income. I don’t know the details of how they’re doing this but I’m sure it is through support from community and family networks.
The government has paid for some infrastructure improvement in the area. They have made some welcome cosmetic changes but I am not aware of much in the way of direct support for the businesses. Tesco has brought more footfall to the area, as people who travel by bus have to walk onto Spital Hill but this cannot account for its survival.
To keep competing with big Tesco is an achievement. Is it sustainable? I can’t say for certain but I suspect it will continue because the families have invested so much in it.