Small effort can give big return in jobs

May 21 2009 by Nicholas Craig, The Journal

THINK global, act local: the century-old phrase is rolled out incessantly by ambitious companies – and banks – with an eye on the value of local suppliers and customers.

The North East’s more recent and even snappier “Think North East First” campaign focuses on boosting business among regional authorities, companies and services.

If the region’s councils spent just 1% more of their budgets in the North East, an extra 6,000 jobs would be created, according to the North East Chamber of Commerce. It would also protect many more jobs, particularly with smaller businesses, which make up the bulk of regional private sector employment.

A similar campaign in north Northumberland – “Keep it Local” – promoted by the weekly newspaper, believes a million pounds a month could be pushed into the local economy if local people spent just £10 a week at local businesses.

Fears of “protectionism” are overheated. The region has to support the health of its own businesses to continue to trade with other areas of the UK, Europe and the world.

It is easy to forget or ignore the huge range of local services, skills and products on our doorstep. Doing regular business with them makes sense commercially and environmentally. They are more convenient, offer a personal service and increase the money in the region’s coffers.

By 2016 up to 22,000 businesses should have been created in the North East, according to the Regional Economic Strategy produced by One North East in those heady pre-recession days. The credit crunch will have knocked those figures, but a push for entrepreneurial new businesses is still required to bridge the yawning gap between the North East and the rest of the country.

We are about 42% below the national average for VAT-registered businesses. This is despite the nurturing of innovative business setups by regional agencies and universities, and the leading role of the North East in stem cell research, chemicals and pharmaceuticals, new technology and automotive industries.

The more we can boost local businesses, the narrower the gap between this region and others. Councils can help by stipulating the use of a local supplier chain. If they all do so, we will see the length and strength of this downturn weaken.

A co-ordinated drive to think local will help companies, shops, restaurants, tourism and a healthy sense of community thrive.

Nicholas Craig, Watson Burton law firm