The number of new businesses starting up in the North East grew by 3.1 per cent in the year to March 2016 to reach a total of 67,800, according to the Barclays Entrepreneurs Index, which tracks the UK entrepreneurial lifecycle.
This increase in the number of enterprises in the North East is in line with trends for the UK as a whole, where the Index recorded a 4 percentage point increase in the number of active companies from December 2015 to June 2016.
The North East region also saw an increase in the number of entrepreneurs realising their wealth from their businesses in the year to June 2016. The region saw 50 deals, which represents a 25 per cent increase on the same period previously. This is a trend seen by the UK as a whole, with a record number of deals resulting in a rise of 33 per cent.
The Index showed only a slight rise in the percentage of high-growth companies within the North East’s SME population, with a 0.9 per cent increase. This puts the region only behind the Midlands (1.7 per cent), Yorkshire and the Humber (1.5 per cent) and the South West (1.2 per cent). The picture for the UK tells a similar story, with only a small increase of 0.7 per cent, however this demonstrates moderate recovery when compared to the dramatic fall of 21 per cent seen last year.
Andrew Miller, director, Barclays Wealth and Investment Management, North East, commented on the report findings comments on the report findings: “The latest version of the Index reveals that the North East’s start-up scene is performing well. The increase across all indicators – start-ups, exits and deals – shows signs of positive growth and entrepreneurial spirit in the region.
“At a national level this year’s Entrepreneurs Index shows that before the EU Referendum, regulations and conditions for entrepreneurs had improved, making it easier to start a business. Until the outcome is fully known, it’s vital that we do everything in our power to deliver a strong environment to sustain UK entrepreneurial growth. Nothing must stand in the way of the North East’s entrepreneurs’ access to talent, skills and the UK’s ability to attract inward investment. That is why we are focused on providing specialist support and funding for high-growth companies in order to generate tomorrow’s world beaters, that will in turn drive economic growth and job creation.”
The Barclays Entrepreneurs Index can be accessed online at www.barclays.com/wealth/entrepreneursindex