Member Article

North East Entrepreneurs report confidence and growth

Confidence, sales, exports and profits are on an upward curve among owner-managed businesses in the North East, placing them at the heart of economic recovery, according to the latest research by the Entrepreneurs’ Forum.

The Entrepreneurs’ Forum Business Tracker Survey for the first quarter of 2013 shows that entrepreneurial businesses in the North East consistently outperform national benchmarks. 45% of respondents indicated a growth in revenues, compared with the same period in 2012.

Key findings included:

• Over the six months to March, exports have risen, with 41% saying they had experienced a growth in export revenues.

• A quarter of respondents had been able to raise prices, with the majority holding their prices and only 8% cutting them.

• Forecasts show that 66% of entrepreneurs also believed their firms would do better in the period April to June 2013, compared with the same period in 2012. Only 6% believed overall sales would decrease.

• 87% of the entrepreneurs expected their overall sales would increase or remain the same and 93% believed employee numbers would increase or stay the same. • However, concerns about cash flow are receding (35% from 41%). It is believed this may be partly due to reduced concerns about taxation, PAYE, NI and business rates.

• Only 9% of respondents now say obtaining finance is a key barrier to growth, against 19% at the end of 2012. Fifty three per cent felt they did not need credit.

• 49% of entrepreneurial led businesses did not access grants, of which 62% said they didn’t need them and 19% didn’t think they would qualify.

The Entrepreneurs’ Forum has, over the past ten years, developed a cross-sector peer group of like-minded individuals who share ideas, knowledge and connections, continually taking soundings from its 480 individual member companies in the North East.

The Business Tracker Survey results show that although there appears to be some consolidation of existing customer bases, there is also concern with 62% of respondents saying finding new customers and markets was a barrier to growth. That compares with 54% in the previous quarter.

Nigel Mills, chairman of the Entrepreneurs’ Forum said: “It appears we are turning the corner and there is now cause for real optimism in the rest of 2013, into 2014 and beyond. The growth in GDP announced last week suggests that the positivity from this survey has been carried into the second quarter and entrepreneurial-led businesses are at the heart of this strong performance. Indeed, our enterprising business members are now telling us they have an expectation of further growth, building on what has happened in the last several months. This bodes well for all sectors of North East business and the wider UK economy.

“Many entrepreneurs have refused to let the reduced ability to borrow from banks hold them back. Instead, where they have been unable to self-fund their growth, they have explored all sources of funding, from family and friends to venture capitalists.

“We do have our challenges. Skills shortages are being felt severely and can be a real brake on growth. What we are finding is that many businesses are coming up with innovative ways of sourcing skilled young people, retaining their skilled people and attracting new workers.”

This was posted in Bdaily's Members' News section by Recognition PR Business Team .