Partner Article

The funding divide: Why the North deserves more than lip service

If you’re running a business in the North, let’s face it, it often feels like you’re playing football uphill with the wind in your face (whilst it’s raining and the field is drenched, no less). The big investment pots, the fancy networking rooms, the easy access to money… it feels like they’re all predominantly down south. Research by Price Bailey found that businesses which are in the North of England are more likely to face challenging financial issues than those in the south (see here), whilst a whopping 60% of high-growth companies are based in London and the South, only 16.6% are in the North.

London start-ups get showered with funding, the best connections and big introductions. Up north there’s nowhere near the same level of opportunity.

It’s not because there aren’t incredible businesses here. There absolutely is. 

In fact, I’d put Northern grit and innovation (and definitely their sense of humour, kindness and people skills) up against any city in the country. 

But the people who control the purse strings and make the decisions are often hundreds of miles away. When Northern businesses are invited into those conversations, it can feel like we’re being rolled out as a novelty act rather than serious players. And I really want to start to see a shift. 

The impact of being overlooked

This isn’t just about pride. When funding doesn’t flow up here, it slows everything down.

Less money means slower growth, fewer jobs, and fewer chances to innovate. It also means we lose talent. I’ve seen some of the brightest people I know pack up and move south because they think that’s where you have to be to make it big. And once they’ve gone, they rarely come back.

Even established businesses are affected. A lack of capital makes it harder to expand, hire, or invest in the latest tech. Those decisions get pushed back, or scrapped completely, and that means the North’s economy moves forward at a snail’s pace while other regions race ahead.

And in my experience, when it comes to high end networking events and business conferences, again they almost always seem to be down south. 

The £200 million question

Yes, there’s been some positive news. That recent announcement about £200 million for the North East economy from a Government backed fund was great to see. But does it just scratch the surface? Let’s get real… when you compare that to the billions pumped into the South East every single year, it’s still pocket change.

These headline-grabbing funding announcements are nice, but they don’t fix decades of underinvestment. We don’t need short bursts of money that look good in a press release. We need long-term, consistent backing that is tied to clear results.

It’s not just about the money

Here’s the uncomfortable truth. Even if they doubled the funding tomorrow, it wouldn’t be enough unless we fix the other gaps too.

We need better business networks that connect Northern entrepreneurs with serious investors, mentors and decision-makers both nationally and globally. We need top-level events hosted here, so people travel to us instead of us constantly heading down south with our cap in hand. 

We need proper transport links so it doesn’t take half a day and three changes to get across the region. And we need to change the story about the North. Too often, we’re painted as the struggling underdog that needs help. No. We are an untapped goldmine of talent and opportunity. Investors should see us as a smart bet, not a charity project.

One thing that I do love is that the online space can help to bridge this gap in connecting people via online networking events, groups and memberships. This is why I have invested heavily in creating more online spaces. But I do still believe there is no substitute for in person networking and I just think it's a shame that so much of it is still predominantly down south.

Levelling up in practice

In my own work, I’ve seen what happens when people get visible. I’ve had online clients who were quietly doing brilliant work start to blow up in the best way possible because they stopped hiding and started getting in front of the right people. 

The North needs to do the same. We cannot sit around waiting for Westminster to sort everything for us. We need to make enough noise and create enough momentum that the big players have no choice but to take us seriously.

This is why I’ve started hosting my own in person business events called “Business Mastery LIVE” in Leeds; an event for entrepreneurs in the North where everyone gets access to speakers and amazing knowledge, with a low-cost ticket and no extortionate train ticket to London.  I’m also hosting in-person networking events in Leeds as part of my online membership Success School

I'm really hopeful that more people are going to start to take matters into their own hands like I have, and begin creating opportunities that bring people together in the north and improve their chances of success through more access to knowledge and collaboration. Come on people of the North - stop waiting on the Government, who else is going to join me in creating these opportunities and leveling the playing field?

It starts with us. 

 

 

This was posted in Bdaily's Members' News section by Matt Hall, Success School .