The Global Shift: 5 Critical Updates On The Local Enterprise Authority (LEA) In 2025

The landscape of local economic development is undergoing a dramatic transformation in 2025, with "Local Enterprise Authorities" (LEAs) serving as the key flashpoints for national policy shifts. While some regions are aggressively expanding their LEA mandates to drive import substitution and digital exports, others are undergoing a fundamental—and often controversial—integration process that is reshaping how local business support is delivered.

As of December 2025, the narrative surrounding the Local Enterprise Authority is split: a story of robust strategic growth in developing economies, notably Botswana, versus a complex integration and defunding phase in established markets like the United Kingdom. This article provides the five most critical, up-to-the-minute updates on how these agencies are redefining entrepreneurship and economic growth globally.

1. LEA Botswana's Aggressive 2023–2026 Strategic Plan & Export Drive

The Local Enterprise Authority (LEA) in Botswana stands out as a powerful model of state-led Small, Medium, and Micro Enterprise (SMME) development. Established under the Small Business Act (SBA), LEA’s mission is to promote and facilitate citizen entrepreneurship and SMME growth, directly aligning with the Government of Botswana's national agenda to reduce the import bill and create sustainable jobs.

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The Authority’s current focus is anchored in its Strategic Plan for the 2023/24 – 2025/26 period, which emphasizes sectoral impact in manufacturing, agriculture, and digital services.

• Import Substitution Success: LEA's support for the horticulture incubation program has been a major success, directly contributing to the country's food security following government-instituted import bans on various horticulture products. Similarly, capacity building through the Baking & Confectioneries training ensured local supply and stability, preventing shortages of essential goods like bread.
• Digital Export Breakthrough (2025): A significant development in March 2025 was the collaborative partnership between LEA and E-Market Solutions Botswana. This Memorandum of Understanding (MoU) is designed to provide SMMEs with direct market access to international e-commerce platforms, including the major South African platform, Take-a-lot. This initiative is a direct push to boost SMME market reach, sales performance, and profitability beyond national borders.
• Incubation and Infrastructure: LEA continues to manage a countrywide footprint, including 13 branch offices and 5 Incubation Centres. Key infrastructure projects include the ongoing development of the Leather Industry Park in Lobatse, aimed at creating vertical integration and horizontal linkages within the SMME community.

2. The End of Central Funding for UK Local Enterprise Partnerships (LEPs)

In a major and definitive policy shift, the central government funding for the core functions of Local Enterprise Partnerships (LEPs) in England is officially ending in March 2025.

This decision, following an announcement at the Spring Budget 2023 and a subsequent consultation, marks the conclusion of a significant chapter in regional economic development. The core LEP functions—including business representation and strategic economic planning—are now being integrated into local democratic institutions.

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The transition process, which received dedicated funding in 2024/25, involves the transfer of responsibilities to Local Authorities (LAs) and Combined Authorities (CAs).

• New Local Growth Mandate: The English Devolution Accountability Framework now requires institutions with devolved powers to embed strong, independent, and diverse local business voices into their decision-making. Mayors of Combined Authorities have a statutory duty to produce new Local Growth Plans, which are expected to be heavily informed by private sector engagement.
• Sustaining Growth Hubs: While core funding for the LEPs themselves has ceased, the delivery of certain programs, such as Growth Hubs and Careers Hubs, is expected to continue under the new local authority structures, often part-funded by the UK Shared Prosperity Fund (UKSPF), though the future of this funding beyond 2025/26 remains a critical question.
• Integration Challenges: The shift has not been without difficulty. Early reports on the integration process highlight challenges such as the loss of key staff with deep local knowledge and a noticeable reduction in the number and depth of business relationships that the LEPs had previously cultivated.

3. The Emergence of Digital and Innovation Sectors as LEA Priorities

The global focus of enterprise support has decisively pivoted toward high-growth, knowledge-based sectors. For authorities like LEA Botswana, this means actively cultivating new entrants in the Digital & Innovation space, a sector that was once considered a "far-fetched dream" when the Authority was founded.

This strategic focus is driven by the need for economic diversification and resilience, moving beyond traditional sectors. The emphasis is on:

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• Technology Adoption: Facilitating the adoption of technology and innovation within SMMEs across all sectors to improve efficiency and competitiveness.
• Intellectual Property (IP) Protection: Providing guidance on Intellectual Property Protection and the commercialization of IP as a valuable tool for SMME growth, a key theme in recent manufacturing summits.
• Youth Entrepreneurship: Identifying a pipeline of interventions specifically designed to stimulate youth entrepreneurship in these high-tech, high-potential fields.

4. The Critical Role of Policy Reform and Business Environment Advocacy

Modern Local Enterprise Authorities are not just service providers; they are increasingly powerful advocates for policy reform and a better business environment. The leadership of LEA Botswana, for example, remains resolute in its stance to promote and press for policy reforms that protect the SMME sector and further propel its growth.

This advocacy role ensures that the challenges faced by small businesses—such as access to funding, regulatory hurdles, and market access—are addressed at the highest levels of government. The Authority works closely with the Ministry of Entrepreneurship to ensure its initiatives are aligned with national goals, such as Vision 2036 and the Botswana Economic Transformation Programme (BETP).

In the UK, despite the dissolution of the LEPs, the principle remains: the new local authorities and Combined Authorities must maintain a strong business voice. The statutory duty to produce Local Growth Plans is the new mechanism for embedding this essential private sector perspective into strategic economic planning.

5. Global Trends: From Direct Funding to Strategic Integration

The two contrasting situations—Botswana's LEA scaling up with new infrastructure and export partnerships, and the UK's LEPs integrating into local government—illustrate a broader global trend: the evolution of local enterprise support.

While the focus remains on driving inclusive economic growth, job creation, and export promotion, the delivery model is becoming more nuanced.

• Botswana Model (Targeted Intervention): This model focuses on direct, targeted interventions, including business advisory services, on-site monitoring, and incubation to address identified business needs or gaps. The goal is to make enterprises viable and grow them by value of turnover and jobs created.
• UK Model (Devolved Integration): This model is transitioning toward a framework where local authorities, often with devolved powers, take direct ownership of local economic strategy, leveraging existing government structures and financial incentives to drive growth. The challenge is ensuring the "business voice" is not diluted in the process.

The future of the Local Enterprise Authority is one of resilience and adaptation. Whether through aggressive new export partnerships in Africa or complex institutional integration in Europe, these bodies remain central to the success of Small, Medium, and Micro Enterprises, which are universally recognized as the backbone of inclusive, sustainable economic development.