Resilient North East can survive downturn

Jun 1 2009 by The Journal and Evening Gazette

THE head of the North East’s business help service says companies in the region are more resilient to the economic downturn than in many parts of the UK.

Alastair MacColl, chief executive of Business & Enterprise North East, which delivers the region’s Business Link service, also said the region’s increasing commercial diversity would help it to weather the recession.

And he hailed a big increase in the number of companies which received help from Business Link as evidence of bosses determination to survive.

The service worked with 34,344 customers and says it has helped create 4,384 new businesses during the last financial year, 15% up on 2007.

Mr MacColl said: “These results are very encouraging and demonstrate the continuing vigour of our business community and the underlying confidence that is there. There are lots of new businesses starting and lots of existing companies which are looking to invest.

“This region has dealt with a great deal of adversity in recent years, more than many other parts of the UK, and has long been building up a diverse economy and I believe we have an economy that is at least as well-placed as anywhere to cope with the recession.” He said he was reassured that so many companies were coming forward to get help and advice. In the last year more than 13,000 companies had received an in-depth business service from Business Link and another 4,000 had been given skills support advice aimed to maximise workers’ potential and productivity.

“There are an awful lot of businesses in the North East which have acted promptly to deal with the impact of the recession and that has put them in good shape to survive,” he said.

Darlington-based Parsec Consulting Engineers, a family-run engineering consultancy, has recently completed an office move and recruited new members of staff with help from Business Link.

The company, which was set up six years ago, and is now based in Grange Road, has been supported through start-up, establishment and development by Business Link.

Shaun Ackerley, managing director of the company which employs seven staff, said: “Despite the tough trading conditions, we are cautiously optimistic and look forward to a healthy year ahead.”