Pinpointing why women go solo

Jan 9 2008 by Karen Dent, The Journal

Women make up a bigger proportion of the North-East’s entrepreneurs than anywhere else in the UK. Karen Dent asks why.

AT first glance, rural parts of the North-East may not appear to be entrepreneurial hot-beds, but dig a little deeper and there is a definite undercurrent of enterprising spirit. And rather than the region’s men, it’s women who are at the forefront of the changes taking place.

Traditionally, British women are less likely to start businesses than men and the North-East itself has a poor track record for creating new enterprises. However, proportionally, there are more female entrepreneurs in the region than anywhere else in the country. Alnwick in Northumberland has the most businesses run by women in Britain, with nearby Berwick in fourth place, Easington in fifth spot, Hartlepool eighth and the Wansbeck area of Northumberland 15th.

The table was compiled by Newcastle-based business consultancy Gavurin, which has been looking at where the most female-run enterprises are located and why. Nationally, 24% of businesses are run wholly by women, but in the North-East, the figure is nearer 30%.

Gavurin spokesman Paul Miller said: “It’s partly explained by the type of businesses we’ve got in the North-East. Women tend to run stereotypical businesses, they tend to run small businesses and people businesses. Women start doing something and think, ‘OK, I can make money out of this.’”

In the Alnwick area, education-based businesses dominate, community services are the most common female start-ups in Berwick, while women’s businesses in the Easington area are mainly related to travel and transport.

The research, based on the analysis of six million directors on the Companies House database and details of almost two and half million companies held on the MLDB – the Market Location business-to-business database – suggests that the less prosperous an area is, the more likely it is to have a high proportion of female enterprises. In Easington and Wansbeck, the lack of male business start-ups is the reason that women’s businesses appear to be so prominent. Paul says it can be more difficult for men to turn their traditional abilities, such as manufacturing or mechanical skills, into viable businesses.

“We’ve a bit of an employee culture rather than an employer culture,” he added. “It takes a while for people to reinvent themselves.”

Around a quarter of the members of the Entrepreneurs’ Forum, a regional entrepreneurial networking and mentoring club, are women. They head businesses in sectors such as engineering and property, as well as those using the ‘soft’ skills often associated with female-run enterprises. The group’s chief executive Carole Beverley believes women succeed because they are not afraid to ask for help and are willing to take advantage of the support available.

She said: “Women’s businesses stick around. Of course everybody fears failure. We will try every which way to guard this precious baby of ours.

“I truly don’t believe it’s difficult for women per se to build a business. We have some wonderful support.”

However, it could be argued that table-topping Alnwick has a number of special circumstances that make it easier for women to strike out alone. The increasing tourist numbers attracted to the Alnwick Garden, Alnwick Castle’s appearance as Hogwarts School in the first two Harry Potter films, plus diversifications taking place at the many farms that surround the town have all helped it to claim pole position.

Farmer’s wife and former solicitor Susan Green set up the Proof of the Pudding in 2001. She sells a variety of traditional puddings, home-made in her farmhouse kitchen near Alnwick, via 50 shops and restaurants in the region and as far afield as the US and Luxembourg. The business has expanded to employ one full-time and one part-time member of staff.

She said: “As farming fortunes have declined it was necessary for me to do something to add to the income stream. This was started by me with a food processor making half a dozen puddings at a time. It’s just grown with demand.

“We were finding that people were ringing us up after having our puddings on holiday and asking if they could order from us direct.”

Susan turned her back on her legal career when she was pregnant with her first child. Both she and her husband had been brought up on farms, with both parents around, and she felt it was more appropriate to be at home with her children. Indeed, many rural women seeking to achieve that sought-after work-life balance are faced with a similar choice. In an area with few part-time employment opportunities, do they commute to Newcastle for work or go it alone from home?

“I think women want to be able to run a business on their own terms,” said Andrea Perrett, a life coach and co-founder of networking organisation, the Alnwick and District Businesswomen’s Group.

Margaret Fay, chairwoman of regional development agency One NorthEast agrees that the area’s relative isolation and lack of opportunities has acted as a stimulant to enterprise.

She said: “Conversely, that’s why Alnwick is doing so well, because a lot of women in the Alnwick area have got off their butts and done it themselves.

“Is it because there are so many farming communities and perhaps a lot of the male population are at a loss as to what to do? Women perhaps think, ‘My husband can’t diversify any more, maybe it’s my turn to do something.’”

But the Alnwick area isn’t the only part of the region where entrepreneurial women are creating successful businesses. Wansbeck and Easington – traditionally considered deprived areas – are also seeing women powering ahead of men.

Dinah Bennett from business support organisation Women into the Network, said: “In areas dominated by heavy industry, women were seen in a support role, but it is actually changing now that women are realising that they can give themselves a job.”

She also pointed out that better business support is now available at grassroots level and women who “stick their head above the parapet” are giving a lead to others.

“We’ve seen a heck of a lot more female role models and research shows that this really does help,” Dinah added. “Women are doing it and paving the way for others in their area. If other women are setting a trend, it tends to be a lot easier.”

Michelle Brannigan, 29, runs the Wansbeck-based communications company BB Tel Ltd, which she set up in 2005 with husband Neil. Just before Christmas, she also took over the Black Diamond Inn and Bubbles Wine Bar, both in Ashington. Michelle, who is involved with the Swans NE networking group, agrees it’s vital that women have access to support from their peers.

She said: “I know through experience of my own business the benefits of sharing ideas, sounding people out and having that listening ear. I believe we have some extremely talented women in Northumberland and I am no different to anyone, it’s about learning and challenging yourself.”

Although women are proportionally leading the way, the North-East as a whole is still dragging its heels when it comes to creating new businesses. The Entrepreneurs’ Forum says around 4.6% of the region’s economy is made up by entrepreneurial activity, compared to the national average of 6.4%. According to Paul Miller from Gavurin, there are around a quarter of the number of enterprises here as there are in other regions. “There is one baker’s shop in Gosforth High Street; in a similar high street in the South, there will be four bakers,” he said. “It’s a major, major, major problem.”

PAGE TWO: find out about entrepreneur Elizabeth Robertson's Embleton empire.