Start-up activity set to continue
THERE is no shortage of people in the North East willing to take a punt on becoming their own boss.
And the recession might even be driving the amount of start-up activity, although numbers are not yet reflected in national statistics.
As Business and Enterprise North East (BENE), which manages the Business Link advisory service, revealed it had dealt with more than 1,750 people looking to start-up a business in the Tees Valley along with nearly 2,800 established businesses, director of marketing Jonathan Lamb said the organisation’s role would become even more important in a downturn.
“We will keep close to One NorthEast and other key bodies as to how the economy is going to affect particular start-ups, but we have seen no less people coming forward.”
Neither did he expect numbers to fall as some individuals took the opportunity to invest redundancy money in new ventures.
But he admitted there was still a ‘two-speed’ economy in the region, with Teesside in the slow lane.
“People are much more positive about starting a business in the north of the region. From Easington down there are problems that are long term and sustained. For some people change takes a long time,” he said.
BENE says it will continue to encourage firms of all sizes to apply for public funding through its North East England Investment Centre, which had issued more than 3,100 investment contracts, worth £9.1m to the region's entrepreneurs.
“We want to wean companies off the public sector, but while it [public funding] is available, we should get the most out of it,” said Mr Lamb.
“What we do not want to happen is that second stage - entrepreneurs delay their growth plans because they think there’s nobody that can help.
“Just because the bank might not be too co-operative doesn’t mean there aren’t alternatives.
“That said, we’re not displacing the banks - it’s not either-or.”
He said the amount of entrepreneurial spirit was unfairly reflected in national figures for start-ups which are collated by the VAT office.
“Most people starting in the North-east do not reach the VAT threshold, whereas in London they all do.”
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