Partner Article

Sector Column: Enterprise continues to flourish on Wearside

As central government continues to encourage self-employment as a means to reigniting the national economy, recently released figures suggest that enterprising people in Sunderland are one step ahead, with a recent start up scheme exceeding its target number of businesses created by over 25%.

The Sunderland Enterprise Consortium, which is made up of advisers from North East Business and Innovation Centre (BIC) and other local enterprise agencies, has helped to start a total of 461 businesses by offering support through the Just the Job initiative, creating an additional 100 plus business starts above its target of 350.

Paul McEldon, chief executive of the North East BIC, said: “The success of the scheme presents yet more evidence that, despite the recession and difficult conditions for everyone, Sunderland is still a hotspot for business start ups.

“Another interesting point about these figures lies in the fact that we usually expect the firms which create employment to be in the manufacturing sector, but there is evidence here that businesses starting up in ‘softer’ areas, such as health and beauty or leisure, are also creating jobs.”

24 Carat Hair & Beauty, based in Grangetown Sunderland, started two years ago after owner Jodie Breeds received start up assistance from the BIC. Since then the business has created two full time jobs and generates work for other small businesses who can hire space at the salon to perform treatments.

Jodie Breeds, owner at 24 Carat Hair & Beauty, said: “I initially expected to work on my own for quite some time, but within six or seven months of starting my business I had to take on staff members as I was just getting more and more customers through the doors.

“When the recession hit there was a lot of talk about how tough it would be for new businesses, but I haven’t felt it at all. In fact my business has grown steadily through it.”

Jodie attributes the success of her enterprise during these tough economic conditions to her own business strategy, as well to the wealth of support which is available to entrepreneurs in Sunderland.

Jodie continues: “From day one I aimed to give customers a high-end salon experience at affordable rates, which has paid dividends, but I would not have been able to get up and running had it not been for the support that is available from organisations like the BIC. People need to be encouraged to try self-employment as small businesses are vital to the local economy.”

The Consortium partners believe that businesses set up as a result of the Just the Job scheme could contribute over £31m to the regional economy by 2013 if the project is allowed to continue, but are yet to discover whether funding can be obtained to extend the programme beyond July.

Paul McEldon, chief executive at the North East BIC, said: “There can be no doubt that Just the Job has been a huge success, and has had a real impact on employment and enterprise in Sunderland, but we need to be able to build on what we’ve achieved so far. Without Just the Job, the government will face an even bigger challenge in building up a strong private sector in the North East, as they hope to do.”

This was posted in Bdaily's Members' News section by Paul McEldon .