Member Article

North East entrepreneurship flourished in 2016 despite economic uncertainty, says Barclays leader

Despite the economic uncertainty that now seems synonymous with 2016, the latest research from Barclays has indicated that 2016 was, nevertheless, a good year to be a UK entrepreneur.

Barclays’ eighth Entrepreneurs Index, which tracks the entrepreneurial lifecycle across UK regions, using data to measure start-ups, business growth and exits, showed that overall UK entrepreneurial performance is at an all-time high – up 10%since 2011.

In this latest edition of the Index, for the first time, Barclays has combined environmental measures, such as access to finance and talent, along with entrepreneurial outcomes, such as growth and exit activity, in order to assess the strength of the UK’s entrepreneurial environment and opportunities for wealth creation.

The UK’s environmental enablers for entrepreneurs are up 13 percentage points in five years and, encouragingly, 4 percentage points higher than in 2015. This shift was driven by greater access to finance and skills, and also gradual improvements in regulation and research and innovation, all of which created optimal conditions for enterprise across the country.

North East analysis

Andrew Miller, North East Director at Barclays Wealth and Investment Management, said: “In the North East, entrepreneurial activity has continued to thrive.

“The number of new businesses in the North East rose by 3.1% in the year to March 2016 reaching a total of 67,800 start-ups.

“The Index also showed a slight rise in the percentage of high-growth companies within North East’s SME population, with a 0.9% increase. This puts the region only behind the Midlands (1.7%), Yorkshire and Humber (1.5%) and the South West (1.2%).

“Whilst entrepreneurship in the North East apparently continues to flourish, we cannot ignore the fact that in 2016, Britain has gone through significant economic and political change.

“However, instead of feeling discouraged by the complexities of the Brexit results in particular and how it may impact them, entrepreneurs and business leaders should feel positive about the wider economic opportunities available to them, as evidenced by some of the findings of the Index.”

Andrew added: “In order to succeed, whilst also coming to terms with the aftermath of the Brexit vote, we recognise that nothing must stand in the way of entrepreneurs in the North East’s access to talent, skills and the UK’s ability to attract inward investment.

“That is why we are focused on providing specialist support and funding for high-growth companies in order to generate tomorrow’s world beaters that will in turn drive economic growth and job creation.”