The North East struggles to maintain entrepreneurship growth
In a stark economic climate, the North East has seen a slight decline in expansion. The North East has 97 high growth companies, more than Wales and Northern Ireland. However, the region has just 19 companies backed by private equity funding, fewer than any other region.
Its expansion has slowed, with just five companies receiving this type of funding, the lowest number in the UK. It received £10 million of expansion investment – again, the lowest out of all UK regions. However, the North East has seen stronger metrics in entrepreneurship in the past, pointing to its potential to regain its foothold amongst start-up businesses in the future.
However, the North East is performing more positively when it comes to venture capital funding. The North East has 10 companies with VC funding, higher than the North West and East Midlands. The North East’s £4 million in VC funding equals this kind of investment in the West Midlands and tops that of the East Midlands and Northern Ireland.
National data offers a conflicted snapshot of entrepreneurship, while regional data proffers a promise of diversifying new business activity. London and the South East remain strong incubators, and the North’s entrepreneurial growth is strong.
A barometer of the entrepreneurial environment and activity in the UK. This, the ninth volume, focuses on three main indicators: start-up activity, growth of new business and exits of young enterprises.