Partner Article

Readers look for the positives of the cash and jobs cull

REFLECTING on economists’ fears that too many government spending cuts and tax hikes will slow growth in the region, bdaily readers have been offering their views online about the future of entrepreneurship in the North East.

According to the latest forecast report by Ernst and Young, UK tightening by the new coalition government should not choke the recovery, however it is expected to slow growth over the next two years.

And a strategy to slash spending by £6.5m in this year alone has led to the belief that the publicly reliant North East economy could be left behind.

Yet when bdaily readers were asked if the looming spending cuts could actually boost entrepreneurial activity in the North East, many agreed and were in favour of reducing the region’s dependence on government cash and jobs.

Ruxana Mahdi said: “There are too many “non-businesses” out there that have survived purely because of government funding either directly or indirectly.

“Let’s see some proper businesses start up that are useful and really entrepreneurial. There are some amazing guys in the region that I have met recently that are really going for it and it is brilliant to see that.

“Some of them are very young and keep going no matter what.”

Jonathan Ward said many of his friends and colleagues working in the public sector are already thinking about going it alone and he has urged people with sound business ideas to make them a reality.

“People are beginning to realise that business start-up is not that daunting and although there’s likely to be less grants and funding, they know that a good idea, plenty of nous and a never-say-die attitude will keep things going,” said Mr. Ward.

“Being your own boss wouldn’t even have been on their radar several years ago.”

One reader, however, wasn’t so sure public spending cuts would drive new business start- ups in the region.

David Howl said: “There has been a reliance on public funds for business support activities generally, however start-up activities and enterprise work carried out in schools needs an element of public support to drive these vital areas forward.

“Through its Big Ideas programme, the BIC has worked with over 6000 students and 700 teachers to promote creativity, enterprise and innovation within schools, colleges and universities with great results.

“In 16 years the BIC has been involved in the creation of over 4500 businesses and 6,000 jobs.”

To add fuel to the debate, join bdaily’s group on LinkedIn and offer your views on the latest business talking points that affect the North East.

This was posted in Bdaily's Members' News section by Ruth Mitchell .