Member Article

North East entrepreneurial landscape thrives as startups rise 12%

The number of new businesses starting up in the North East grew by 12% in the year to March 2015 to reach a total of 66,000, according to the Barclays and BGF Entrepreneurs Index, a bi-annual series tracking the UK entrepreneurial lifecycle. This was the largest rise in the number of new businesses in the country.

The boom in the number of businesses echoed a trend seen at a national level, where the number of active companies rose by 3.86% - the biggest rise since the Index began in 2012. Nationwide, the number of company dissolutions was also lower than in the previous six months – the first time this has happened since the Index began – reversing a three-year trend.

The North East also saw a significant increase in the number of entrepreneurs realising the wealth from their businesses in the year to June 2015. The region saw 43 deals, meaning the transaction numbers jumped by more than 16% on the same period previously, albeit from a low base. However, the report showed that the proportion of high-growth companies stood at 19.2% in the year to December 2014, down 1.5% on the previous year.

Andrew Miller, Director, Barclays Wealth and Investment Management, North East comments on the report findings: “The North East has seen a flurry of activity taking place in the tech sector in recent years, which no doubt has played an important role in the impressive rise in the number of enterprises in the area. It is very encouraging to see that entrepreneurialism is clearly now truly embedded in the psyche of the North East’s business community.

“However, the report shows that there is an opportunity to replicate the success of the startup scene at the scale-up stage, to enable a greater proportion of North East businesses to achieve high growth ambitions.

“The industry needs to do more to support this segment which is why we are leading the way by offering a unique proposition for high-growth firms, providing access to a range of innovative funding, services and networks for the most ambitious businesses driving economic growth.

“Barclays is committed to supporting the North East’s high-growth businesses and their founders throughout their entrepreneurial life-cycle − from startup to IPO. We are passionate about helping the wealth and employment creators of the future.”

Andy Gregory, Regional Director – North, Scotland & Northern Ireland, BGF added: “As long-term equity investors in growing UK companies, we are excited by the size and dynamics of the addressable market in the North East.

“It is very promising to see that the region has seen such a positive rise in the number of entrepreneurs starting up their own companies and I’m hoping their confidence will encourage other business leaders to pursue their own entrepreneurial ambitions.

“These figures match the ambition that we experience regularly as we meet growth-oriented business owners in the North East to explore the ways in which BGF can provide capital and support to achieve their near and long term goals.”