Member Article

Sales and profits up as entrepreneur confidence rises

Entrepreneurs in the North East are showing increased confidence as sales and profit grow, according to the latest research by the Entrepreneurs’ Forum.

More than 70% of entrepreneurs in the Entrepreneurs’ Forum Business Tracker Survey for the third quarter of 2013 said that they had witnessed an increase in sales, compared with the same period in 2012.

And with 71% having seen a sales increase, 72% predicted this would continue to grow into the fourth quarter, compared to Q4 2012.

Profits and jobs were also on the rise, with 60% saying they had seen an increase in profits and 41% telling the survey they saw employee numbers increase when compared to the same periods in 2012. Additionally, the survey showed the highest rates of respondents feeling optimistic about the future of their business and the economy as a whole since the research began in early 2012.

Key findings included:

• 69% reported feeling more confident in their own business and 67% saying they had more confidence in the economy than the same point three months ago. In Q2, these figures were both 61%.

• 72% of entrepreneurs forecast a rise in sales in Q4, compared with predictions for Q3 of 66%.

• Key challenges, or barriers to growth, included finding quality staff (16%), and generating new sales leads (16%).

• 39% said they had experienced a growth in export revenues compared to the same period in 2012. 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.

Nigel Mills, chairman of the Entrepreneurs’ Forum said: “Our members are reporting that confidence, sales, profits and jobs are all on the rise in their businesses.

“Entrepreneurial businesses clearly remain at the heart of growth in the North East economy. They are not only telling us that things are positive within their own businesses, they expect more of the same to follow.

“We cannot ignore the North East’s position when it comes to unemployment statistics, but it is clear that entrepreneurs such as the members of the Entrepreneurs’ Forum are making a real difference by driving their businesses forward and creating jobs.

“Despite the unemployment figures, one of the key challenges our members are reporting is that they struggle to find and recruit quality staff, so skills is something which clearly needs to be addressed as the region moves forward through 2014. Likewise, members say generating sales and leads is a challenge, but the strong overarching message from entrepreneurs is one of positivity and growth.”

Entrepreneurs’ Forum member Howard Ions, managing director of Salem Tube International, is hoping to invest more than £2m in new premises and expanding its product range. The Prudhoe company employs 31 people, providing heat exchanger technology around the world, with export accounting for approximately 70% of its £12 million turnover.

He said: “We see things as fairly stable and are confident enough to be looking at making investments in equipment and space for future growth, through the provision of a wider range of products and services. Some of the investment would come from our own funds, supported by lending and grants, but while such money is available, it isn’t easy to secure and this is still a challenge to growth.”

Stephen Irish is another member whose business, Hyperdrive Innovation, is on the up. The two year old company is seeing significant growth, has just recruited and is looking for more staff, specifically engineers with electronics or technical project management experience.

Stephen, Managing Director of the Cramlington firm, said: “We are in a growth market, developing, manufacturing and selling low carbon vehicle technologies, and our business is growing. As well as client projects, we have expanded the suite of products we sell and are able to develop a strategy that will help us to grow in future years.

“We have just recruited our 11th member of staff and are looking for more, but while finding good recent graduates is not a problem, it is more of a challenge to find more experienced people.”

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