North East LEP business support platform creates jobs and boosts economic growth

An independent evaluation of one of the region’s “leading” business support platforms has shown its support for North East businesses has led to an increase in jobs, productivity and economic growth.

Organisations that received support from the North East Growth Hub, which is managed and delivered by the North East Local Enterprise Partnership, saw, on average, a 41 per cent increase in employment, a 22 per cent increase in turnover, and a performance increase of £8.8k per employee one year after receiving support.

The evaluation, which was carried out by Technopolis Group, also found the North East Growth Hub has been successful in curating and simplifying the business support landscape, making it easier for organisations to access finance, navigate economic shocks, like the COVID-19 pandemic and EU exit, and better understand their individual needs.

Lucy Winskell OBE, chair of the North East Local Enterprise Partnership, commented: “Since it was launched in 2014, the North East Growth Hub has been a lifeline for thousands of North East businesses.

“Between April 2018 and March 2022, more than 115,000 North East businesses have received personalised, tailored support from the North East Growth Hub, with thousands more accessing impartial advice via the website.

“One area of the evaluation I’m particularly proud of is the recognition that the support provided by the North East Growth Hub is person-oriented, and that businesses feel the triage team and North East Connectors are ‘friendly insiders’; able to understand what businesses need, and how to find it.”

An econometric analysis of the North East Growth Hub looked at the business support platform’s success in delivering economic growth, increasing turnover, and improving performance in the North East economy.

It found businesses that received support from the North East Growth Hub employed up to two new members of staff after one year, whilst businesses that didn’t receive support from the North East Growth Hub saw close to zero employee growth.

Businesses aged five years or less saw an 8 per cent increase, and SMEs with fewer than 50 employees saw a 5 per cent increase in employment, compared to 3 per cent for larger businesses. Businesses that engaged with the North East Growth Hub also saw a significant rise in their turnover.

After one year, the average increase was £378k (22 per cent), compared with £81k (6 per cent) for businesses that didn’t receive support. Companies operating in the manufacturing sector earned £291k more, the professional services saw a £234k increase, and businesses operating in the wholesale and retail sector reported a £170k increase in turnover.

By Matthew Neville – Senior Correspondent, Bdaily