Passport to an industry

Jul 15 2009 by John Anderson , The Journal

VARIOUS initiatives have been launched in recent years to help plug the gap that the decline of manufacturing industries left in the region.

Some have had a positive effect with numerous new entrepreneurs and enthusiasts setting themselves up as champions of the North East economy.

Public and private sector organisations have also joined forces to pursue a common goal – to develop sustainable businesses in the region. As a result, a diverse range of companies has begun to appear but, most surprisingly, is the emergence of a burgeoning software industry.

Granted – the North East of England is not the first place that springs to mind when you think of software development. But does this mean we should stop and go back to reminiscing about how things used to be, and consign our industrial developments to the history books?

I certainly hope not; the North East is a passionate place, and our in-built confidence has done much not only to strengthen our reserve during some incredibly difficult times but also ensures we keep innovating, so enabling us to establish a variety of new industries – including a vibrant tourism and creative sector.

Can the same logic be applied to the software industry? I believe so – for software (in various guises) is at the heart of so many businesses. Unfortunately, software doesn't have a glamorous image. But initiatives like Sunderland Software City (starting to gather momentum after a slow start) are helping to change perceptions and highlight how important the sector is.

On a practical level, Sunderland Software City has been set up to attract inward investment and provides the infrastructure to create and grow software enterprises. The willingness of One North East and other organisations to support the initiative is a real stamp of approval.

The latest investment of £2.1m, secured by the North East Business and Innovation Centre (BIC), will help to create more than 70 new businesses by providing bespoke pre-start support for software entrepreneurs; mentoring, finance, facilities and services.

But this is just one example, and I believe the diversity of the initiative, which brings together industry experts, academics and potential investors, will enable it to flourish and become a sustainable platform upon which the sector can continue to grow.

Already a new raft of entrepreneurs is beginning to emerge, having taken advantage of a variety of programmes including sessions specifically for post-graduates, to help them develop their business skills

Initial feedback has been incredibly encouraging and is indicative of the next generation's get-up-and-go attitude, which highlights not only the need for such initiatives, but also their potential.

Likewise many specialists and existing software businesses are stepping up to add their support to the development of this sector – firms like Finance Tree, Wood Holmes and Leighton. Why?

Because they appreciate that, to develop an internationally recognisable and sustainable software industry, we must help to develop new and fledgling businesses – while also attracting existing ones to settle in the region. I commend these organisations for their enthusiasm and look forward to reading about the new breed of software businesses in the Top 250s of the future.

John Anderson is chairman of North East Business and Innovation Centre (BIC).