Entrepreneurs maintain their spirit in downturn

Nov 27 2008 by Karen Dent, The Journal

THE economic downturn is not stemming the North East’s entrepreneurial spirit, according to the boss of the North East’s biggest business advice service.

Alastair MacColl, chief executive of Business & Enterprise North East, which provides Business Link services and runs the North East England Investment Centre (NEEIC), says he has confidence in the region’s entrepreneurs.

In the last six months, Business Link has worked with more than 17,259 customers, beating its target of 14,972 for the period. NEEIC, which dispenses public funding through Business Link, has agreed to more than 3,000 investments worth more than £9m in that period, and has worked with 1,400 pre-start-ups and around 1,700 established business.

Mr MacColl said the figures demonstrate that the downturn is not putting off entrepreneurs who want to start and grow their enterprises.

He said: “We are very pleased with the progress. It’s been an incredibly busy period. We have helped and supported more businesses than we expected to.

“We are very ambitious and we have a very robust, dynamic business community. The businesses we are working with are still very much focused on growth.

“We are still seeing a large number of established businesses focusing on growth. Business support now reflects that ambition.”

Around two-thirds of the businesses NEEIC issues funding to are established enterprises, mainly with up to 250 employees, although it will work with companies of all sizes.

And the organisation is helping companies large and small access support designed to help them weather the storm.

The assistance is being made available through Business Link, which is helping companies access public funds to help them manage debts, restructure their financing and expand into new markets.

Mr MacColl says there has been a radical improvement in the way business support is accessed since it took over the Business Link service.

“We now have a service that is regionally consistent but locally targeted. We are investing more resources out in the field. We have simplified things and made them easier to access and understand,” he said.

And the speed of the economic slump means the organisation has had to move quickly to provide relevant help.

“The work that we do will change and develop to reflect the needs of the region and the business community,” he said.

“The economic outlook has changed rapidly. When things are more difficult, we need to be more energetic.

“It is crucially important that people know what is available and how to get it through the Business Link service.”

Despite the wider economic gloom, MacColl remains upbeat about the regional outlook and the first six months of NEEIC’s operation.

“It’s been a very strong and progressive six-month period,” he said. “We want this region to be the best region in Europe to grow or start a business, and we will be working through Business Link to achieve that.”