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North East startup scene ‘performing well’, according to latest study

The region’s startup scene is ‘performing well’ according to the Barclays Entrepreneurs Index, a study examining the UK’s entrepreneurial landscape.

The Index’s research shows that the number of new North East businesses launching in the year to March 2016 reached a total of 67,800, representing growth of 3.1%.

However the growth is slightly lower than the UK as a whole, where the Index recorded a 4% increase in the number of active companies from December 2015 to June 2016.

The region also saw an increase in the number of entrepreneurs realising their wealth from their businesses in the year to June 2016.

The region saw 50 deals, which represents a 25% increase on the same period previously. This is a trend seen by the UK as a whole, with a record number of deals resulting in a rise of 33%.

The Index showed only a slight rise in the percentage of high-growth companies within the North East’s SME population, with a 0.9% increase.

This puts the region only behind the Midlands (1.7%), Yorkshire and the Humber (1.5%) and the South West (1.2%). The picture for the UK tells a similar story, with only a small increase of 0.7%, however this demonstrates moderate recovery when compared to the dramatic fall of 21% seen last year.

Andrew Miller, Director, Barclays Wealth and Investment Management, North East, said: “The latest version of the Index reveals that the North East’s startup scene is performing well.

“The increase across all indicators – startups, exits and deals - shows signs of positive growth and entrepreneurial spirit in the region.

“At a national level this year’s Entrepreneurs Index shows that before the EU Referendum, regulations and conditions for entrepreneurs had improved, making it easier to start a business.

“Until the outcome is fully known, it’s vital that we do everything in our power to deliver a strong environment to sustain UK entrepreneurial growth.

“Nothing must stand in the way of the North East’s entrepreneurs’ access to talent, skills and the UK’s ability to attract inward investment.”

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