The article explores how the type of workers in an area affects how well businesses do. By looking at data from firms in New Zealand and the people living in those areas, the researchers found that firms do better when they are surrounded by skilled workers and in densely populated areas. High-skilled workers help firms in high-tech industries and small businesses. Being in a crowded area is especially good for small and new businesses. Firms that offer local services do well in areas with lots of migrants and new residents, which shows that local demand plays a big role in productivity.