Member Article

Entrepreneurship will fuel increase in number of North East millionaires

By Richard Clark and Simon Patterson, Assistant Vice Presidents at Barclays Wealth, Newcastle

There are many signs pointing towards positive entrepreneurial activity and increasing wealth in the North East, according to recent research, as well as anecdotal evidence.

This rise in entrepreneurial activity could be explained by more favourable business conditions. Although the long tail of the recession is still causing volatility and uncertainty in some sectors, a cautious sense of optimism is starting to prevail.

Our team has seen a rising number of successful entrepreneurs looking to exit their businesses and start new ventures, helping to fuel regional growth and provide support to their communities through increased employment opportunities.

As a result of this activity, including the region’s experience of increasing business sales and takeovers in recent months, it is believed that there will be a substantial growth in wealth in the region.

The region has seen a steady rise in the number of millionaire inhabitants over the last two years, according to Barclays Wealth research, as millionaire numbers have increased from 12,000 to 14,000. This figure saw a particular rise between the period of 2009 to 2010, which was a trend seen across the UK.

More importantly, this growth in wealthy individuals isn’t just set to continue, but to advance faster than any other region in the UK, meaning that by 2020 the North East will be home to 20,000 millionaires, representing an increase of over 40 per cent.

Similarly, the most recent research from the Federation of Small Businesses (FSB) found that small firms are reporting an improved sense of business confidence in 2011.

According to this year’s first quarter ‘Voice of Small Business Index’ from FSB, just over a third (36 per cent) of small firms expect overall business performance to improve in the next three months. Business confidence in the North East has seen one of the biggest jumps, with over half (56 per cent) of small companies more positive about their prospects than they were at the end of 2010.

Another example of the entrepreneurial spirit in the region is the establishment of not-for-profit organisations, including Entrepreneurs’ Forum, which support and encourage start ups and more established organisations in the region.

As you may expect, the rise in wealthy individuals has had a flow on effect, leading to the expansion of our office. There has been an influx of new hires this year, as we remain committed to supporting the region, and as we watch the rise of wealth and entrepreneurship enrich the North East and enhance the local communities, we are excited by the opportunities and challenges ahead of us.

Richard Clark and Simon Patterson joined Barclays Wealth Newcastle at the beginning of the year as Assistant Vice Presidents and are focused on providing wealth management advice to new and existing clients, as well as establishing relationships with local businesses.

This was posted in Bdaily's Members' News section by Richard Clark .