The purpose of this paper is to test the effectiveness of collaborative dialogue to support small business development in small communities.
The paper employs a case study involving collaboration using both an interpersonal network structure and an inter‐organizational project structure.
the paper finds that collaboration mobilizes local resources to fill structural and relational gaps in the local institutional environment for SMEs.
The research agenda for collaborative planning should include studying institutional factors that can hinder some actors such as small businesses from participating.
The paper provides practical experience of banks as community development actors, and identifies a potential conflict in normative collaboration theory between inclusiveness/diversity and a “higher level” institutional focus.
