North East Fund says determination in local SMEs is 'strong' despite UK-wide uncertainty

The North East Fund has reported increasing enquiry levels in terms of regional companies seeking funding for growth despite a general lack of certainty amongst UK businesses.

On a recent visit to the region, Federation of Small Business national chair, Mike Cherry, highlighted that the ‘ongoing Brexit debate had led to political paralysis in the UK which had transferred to many businesses holding back on investment.’

He also added that ‘small businesses are in a state of exasperation’ as Brexit keeps important issues off the agenda and how ‘everything seems to be on hold in so many places, whether it’s investment in business or local authorities investing in whatever they are providing’ for communities.

However, whilst this may be true, the North East Fund is, in contrast, reporting more positive results with continued numbers of regional SMEs seeking investment to grow and expand their businesses, and develop new products and services despite Brexit.

The £120m programme, supported by the European Regional Development Fund (ERDF) and the European Investment Bank (EIB), has now reached its 150 investment milestone with over £25m having been allocated by fund managers to local SMEs recently.

CEO of the North East Fund, Jason Hobbs, explained: “We are seeing a sustained number of enquiries from local businesses across the region, from Northumberland down to County Durham, seeking investment to grow and this is very encouraging given the current economic climate surrounding Brexit.

“Whilst the FSB is correct in relation to the general feeling within the wider business community, the North East has always had a determination to succeed so we are seeing some great businesses coming through seeking funding.

“With that in mind, I remain optimistic about the region’s future. As a fund, we are fully committed to supporting the ambition of all businesses in the North East regardless of size or sector.”