Local context, local solutions: increasing returns from municipal policies supporting SMEs
Abstract
This study examines how local contextual characteristics influence the effectiveness of municipal support mechanisms for small and medium-sized enterprises (SMEs). Drawing on survey data from 513 SMEs in Israel and applying structural equation modelling, we analyze whether population size, socioeconomic status, and demographic composition moderate the relationship between municipal service provision, SME owners’ satisfaction, and municipal economic outcomes. While population size shows limited overall moderating role, socioeconomic status and demographic composition significantly shape satisfaction and related economic returns. These findings challenge the assumption of policy uniformity and underscore the need for differentiated place-based strategies in SME policy design and local economic development.
Fields of Study & Subjects
Rural development and sustainability
Regional Development and Policy
Education Systems and Policy
Publication details
- Journal / source
- Small Enterprise Research
- Publisher
- Informa UK Limited
- Volume
- 33
- Issue
- 2
- Pages
- 159–177
- Publication date
- 4 May 2026
- Language
- EN