Business growth and finance Archives - Page 19 of 29 - North East Local Enterprise Partnership

An alliance aimed at supporting GPs has expanded in size and numbers, taken on over 30 employees and moved into office space over double the size.

Sunderland GP Alliance have moved from 200sq ft to 480sq ft at the North East Business and Innovation Centre (BIC) to fulfil a flurry of new contract wins.

Sunderland is one of a small number of “vanguard” areas across the country unveiled in a £200million announcement by NHS England that will take the national lead on changing the way patients are cared for. Sunderland GP Alliance is one of the partners at the cutting edge of innovation in the NHS to develop new models of care. Chief executive, Jon Twelves explains:

“The company only began last year and I am delighted in how fast we have grown in such a short space of time. Our aim is to improve services for patients, and help the NHS become more sustainable, by exploring how we can do things differently in General Practice. It’s been a great first year, but we’re only at the beginning of our journey and there are lots more opportunities for our company to support GP’s to work more collaboratively and at scale. We’ve just started to scratch the surface.

“We remain at the BIC because of the excellent value for money and the flexible, risk free, easy in, easy out terms, not to mention the support services and the great location.”

Director of operations, David Howell added: “It is inspiring to witness the speed of growth that Sunderland GP Alliance are experiencing. From one to 30 staff in a year is very encouraging. I’m excited in seeing what the next 12 months deliver for Jon and his team.

“We have had over 20 years hands on experience in supporting companies by offering a focused approach with appropriate accommodation for their stage of growth and we are proud to have such innovative companies like Sunderland GP Alliance as part of our business community.”

The first in-depth survey of business banking by the North East Chamber of Commerce (NECC) and Smart Money People has revealed that businesses are moderately satisfied with their banks, but high account charges and slow account opening processes are a concern.

Having taken the pulse of 209 North East businesses, the survey found although business banking received a 71% overall satisfaction rating, just 19% of all businesses reported receiving a good or excellent level of customer service, demonstrating there is still room for improvement.

Mike Fotis, founder of Smart Money People said, “Although expectations around business banking remain low, the results of our business banking pulse show that there are four clear areas where banks can support the region’s businesses better. These four areas include more/better relationship management, better access of capital, better access to business planning/financial advice and better interest rates for positive balances.”

Ross Smith, Director of Policy, NECC said, “North East businesses need a well performing business banking environment to help them thrive. It’s encouraging to see that on the whole, there are good levels of satisfaction amongst businesses. We’ll report the findings of the North East Business Banking Pulse to the banks and encourage them to look at the four areas of further support identified.”

The results showed 12% of businesses now use two or more financial providers, a sign that North East businesses are taking advantage of a range of niche, financial firms for items such as foreign exchange or working capital. Surprisingly, only 7% of all respondents cited better access to capital as an improvement they would like to see.

Gemma Lonsdale, Director, Sunderland-based recruiter Willow Hudson was one of the businesses who responded to the survey. She said: “It took me over two months to open an online bank account due to a backlog at the bank I chose which caused great problems in my business. However once it was open the service has been excellent and I have given it a five star rating.”

A total of 4% of North East businesses stated that they were thinking of switching providers, although 21% mentioned they used a local branch frequently.

Many businesses queried the cost of business banking charges with a number of respondents agreeing with the view “I pay a monthly fee, but not sure what I am paying for?”

You can find out how your bank compares by looking at the Smart Money People best business banking league table.

One of the North East’s longest established law firms has expanded its presence to the North East Business and Innovation Centre (BIC).

Jacksons Law Firm, which is celebrating its 140th anniversary this year, already occupies offices in Teesside and Newcastle and with 70 members of staff, including 10 partners and 30 legal experts, the firm offers a wide range of businesses and personal legal services to clients in the North East and throughout the UK.

Paul Clark, an associate solicitor specialising in employment law, is now working from the BIC’s Business Lounge to establish a presence in Sunderland. After attending a networking event hosted by the BIC, Paul identified an opportunity to have a cost effective presence in the city, Paul explains:

“We are well established in Teesside and Newcastle and have an excellent reputation in the region for advising on business and personal matters.

“There are a number of growing businesses and start-ups in Sunderland and all along the A19 corridor so because of the BIC’s great location and the firm’s regional footprint, it seemed like the ideal opportunity for Jacksons Law Firm to pursue.

“I had already considered setting up a base at the BIC and my belief was reinforced after attending a networking event in the Business Lounge. I didn’t need much convincing that this was the place for me. With a selection of high calibre space at the BIC, not to mention the potential to work with so many impressive businesses based here, I am confident that this will prove to be a successful venture for everyone concerned.”

The BIC’s Business Lounges are located in Sunderland and Darlington and packages start at just £12 per week. Benefiting from a modern, professional setting in two great locations. Free secure Wi-Fi, free car parking not to mention free coffee! Simply drop in and work.

For more information on the BIC’s Business Lounge contact 0191 516 6066.

Vantec Europe’s new warehouse in Sunderland, the company’s second major investment in the city since 2012, was officially opened on Thursday 21 April.

The £23 million, 436,000sq ft. warehouse is the first to open on the new Hillthorn Business Park. The opening ceremony was attended by Vantec Corporation’s president, Mr Yokinobu Kodama, and Mr Fumio Komamura of Vantec’s parent company, Hitachi Transport System Ltd.

The Hillthorn warehouse, which will exclusively handle logistics work for Nissan, brings Vantec and Hitachi Transport System’s investment in the Sunderland area to almost £50 million since 2012. The company opened another large scale, 417,000sq ft. warehouse on Turbine Business Park to handle work for Nissan three years ago.

The new Hillthorn Business Park building is already full and Vantec is beginning to recruit the first of 120 jobs which can be realised due to the creation of this building.

At the opening, Mr Kodama said: “Not only are we officially opening Vantec Europe’s newest warehouse building at Hillthorn Business Park, but also recognising Vantec’s 25^th anniversary in Sunderland this year.

“During these last 25 years, we have grown along with our strategic customers, such as Nissan, to a point where we now employ over one thousand, one hundred people in the North East of England, over nine hundred of which are based within our Sunderland operations.”

Vantec Europe managing director, Martin Kendall, said. “Vantec and Hitachi Transport System have shown their commitment to the growth of the business within Sunderland and have invested almost £50 million into job security and job creation within the past five years.”

“It shows the company’s confidence in the North East, especially the Sunderland area, and provides stability and the ability to invest in future growth. This is now the company’s 25th year in Sunderland and it is great to see our parent companies investing with a view for the next 25 years.”

“We will be able to create a further 120 jobs over the next couple of years due to the creation of Hillthorn, and we are still on target to create the 234 jobs by 2017 following the investment in Turbine Business Park.”

Vantec Europe now owns three warehousing and logistics sites across the city with over one million square feet of warehousing. The company is the preferred provider of Just in Time logistics for the car manufacturer in Sunderland.

Martin Kendall said: “Our strategy is to get all the warehousing for Nissan as close to the plant as possible to reduce logistics costs. The long term plan allows us to deliver cost-effective logistics solutions to our customer.”

The new building and the Turbine Business Park warehouse totalling almost £50m, were both built by GMI Construction Ltd within very tight timeframes. Work began on the Hillthorn Business Park site in May 2015 and the building was occupied in December 2015.

The North East Local Enterprise Partnership supported infrastructure work for the new facility from its North East Investment Fund using Regional Growth Fund support.

Vantec Europe has also benefitted from its supportive relationship with Sunderland City Council, which owns Hillthorn Business Park.

Irene Lucas CBE, chief executive of Sunderland City Council, said: “Vantec’s decision to build its new giant warehouse at Hillthorn Business Park and become the first company on the site is a significant statement of confidence in the city.

“It echoes the huge commitment and confidence shown by the Japanese parent company in Sunderland and the city’s ability to deliver growth and jobs. The building of this new warehouse, so soon after the previous site at Turbine Business Park, is proof that the company sees a long-term future in Sunderland, which is fantastic both for our local economy and that of the wider North East region.”

Andrew Hodgson, chair of the North East LEP said: “Vantec Europe’s continued growth is creating new jobs and a total of around one million sq ft of warehousing in Sunderland. The company’s performance underlines the thriving productivity and ambition of the region’s automotive sector, and the continued success of both Vantec Europe and Nissan in highly competitive global markets.”

In the North East, Vantec Europe provides warehousing and logistics to Nissan Manufacturing UK, Sunderland; Komatsu UK, Birtley; Cummins Engines, Darlington; and Thorn Lighting in Spennymoor. It also has facilities in Bognor Regis, West Sussex, providing logistics services to its Southern customers.

The company is wholly owned by Hitachi Transport System of Japan.

Pictured: Fumio Komamura, executive officer of Hitachi Transport System; Andrew Hodgson, chair of North East Local Enterprise Partnership; Yokinobu Kodama, president of Vantec Corporation

There’s often a lot of noise around the phrase ‘business growth’ but in the North East there’s a tangible desire for the business community to foster success together. For many, accessing the support and advice available out there is challenging. But that’s changing thanks to the Growth Hub.

The online platform gives small businesses ‘one stop’ access to a range of support, and allows the North East business community to connect with and support each other.

One advocate, who recognises the value of business support for harnessing growth is Dr Craig Rose, founder of Seaweed & Co, based in North Shields. Craig said, “Business support has been hugely influential for us, I can’t emphasise enough how helpful the majority of people that we have engaged with have been. Each organisation made it very easy to work through the process, and stayed in regular contact.

“The North East is a great place to establish and grow a business. We are lucky to be in a region that cares about the people in it. It would be great to see the aspirations of the region as a whole being raised, by everyone realising the huge potential that remains untapped.”

Craig is one of three local businesses to feature in a live panel discussion as part of the ‘Growth Hub Goes Live’ event at The Sage, Gateshead, on Thursday 28 April. The event gives anyone looking to grow their business the opportunity to learn from the experiences of people like Craig, put their questions to the panel and discover what support is available to open doors for growth.

Also speaking at the event is Paul Varley, North East LEP board member and former CEO of the Newcastle Falcons. Commenting ahead of the event, Paul said, “I’m excited about the Growth Hub. North East businesses will be able to get what they need quicker and easier than ever before. This contributes to a strengthened economy in our region with more jobs and opportunities for all that live here.”

The Finance for Business North East (FBNE) fund – also known as the JEREMIE programme – has secured a £17m top up to enable it to continue investing in the region’s fastest growing businesses through to the end of this year.

The programme, established by North East Finance in 2010, anticipates investing the new money in well over 100 of the region’s most ambitious SMEs during the next nine months.

Sources of funding include a £4.5m contribution from the North East LEP and returns from earlier funds in the region; this has been matched by the European Investment Bank, with a further loan of £8.5m, on top of the £60m + committed to the programme so far. Of this additional funding, £9m will be invested exclusively within the seven local authority districts covered by the North East LEP, and the remainder will be available to companies across the North East including the Tees Valley region.

Since its launch, FBNE has provided vital investment to 850 North East companies – safeguarding or creating more than 6,000 jobs and securing a further £185m of investment into the region from business angels and venture investors across the UK and globally.

Andrew Hodgson, North East LEP Chair, said: “The JEREMIE programme offers an opportunity for the region’s entrepreneurs to access vital finance to start up or grow their businesses. This closely aligns with the goal in our strategic economic plan to create business growth and we are delighted to support this extension.”

Andrew Mitchell, chief executive of North East Finance – which oversees the current fund – commented: “We are delighted that the North East LEP and other funders recognise the achievements of the fund and the valuable support this finance plays in supporting the growth of local companies, underpinning the wellbeing of the regional economy. This additional finance will allow local fund managers to continue to invest in SMEs around the region.

“The further loan from the EIB has demonstrated their confidence in local delivery and this top up will allow the North East LEP time to establish a new ring-fenced fund of £120m to invest in the area’s SMEs through to 2021 – as agreed with the Chancellor last year.”

Stephen Lightly, chief executive of North East Access to Finance, which looks after legacy returns from earlier funds active in the region said: ”I am delighted that legacy monies have been able to make a significant contribution to the extension of the North East JEREMIE fund. It is great news that there will be continuity of investment finance vital for local SMEs and the fact that we can recycle money from earlier programmes shows that these funds really do create long term benefits for the North East.”

Pictured: Andrew Mitchell of North East Finance with Michelle Rainbow of the North East LEP

North East LEP Chief Economist Chris Milne has welcomed the latest Labour Market Statistics which show regional employment close to record levels and falling labour market inactivity.

The employment rate is up 0.5 percentage points on the same period last year standing at 70.3% which is close to the highest rate on record with more than 1.2m people now in work in the North East.

Labour market inactivity is down 0.5 percentage points on the previous quarter to 23.6% while unemployment, at 8.1%, remains at a similar level to that seen during the course of the past year.

The number of people claiming Jobseekers Allowance stands at the lowest level on record, down by more than 5,000 people over the past 12 months.

“This is further positive news following some great statistics over the past few months,” said Chris.

“The challenge now is to push on and continue to reduce inactivity and unemployment. The unemployment rate has flattened at around 8%.

“There remain significant challenges around labour market inactivity and employment, but as the rest of the country has seen steady growth of employment rates, the North East has narrowed the gap with the English average employment rate in each of the last three quarters.

“Service sector and manufacturing jobs appear to have underpinned new job growth.”

FinanceCamp North East is being pitched as the smart new way for regional businesses to secure the right kind of investment to fit their plans for growth.

Details have now been released for this new programme of support which will culminate in a major event on 21 June 2016 at Ramside Hall, Durham, where businesses with bright ideas will meet lenders who want to lend and investors who want to invest.

Enterprises of all sizes, structures and sectors are now being urged to apply for the programme to explore different ways to finance their ambitions – whether that’s through a start-up loan, a multi-million pound equity deal or anything in between.

FinanceCamp has been shaped by input and ideas from a wide cross section of businesses, government bodies, research and educational institutions, business representation groups and support organisations who have an interest in accelerating innovation in the region.

It’s been developed by the team behind the region’s annual innovation conference Venturefest North East, with backing from the North East LEP, North East Finance, the North East BIC and Innovate UK.

Simon Green, Executive Director at Venturefest North East, said: “Venturefest’s investor introductions have helped secure hundreds of thousands of pounds in finance for businesses across the North East over the past few years and FinanceCamp builds on this success story.

“Businesses told us that they needed more opportunities to explore their finance options throughout the year and we have responded with this exciting new programme designed to save time and simplify the investment process.”

Hans Möller, Innovation Director at the North East LEP, said: “We know SMEs have struggled to secure finance in recent years and as such wholeheartedly support initiatives like FinanceCamp North East and our own North East Investment Fund, which provide businesses with the capital they need to grow and create new jobs.

“The Venturefest North East team has done a fantastic job getting this new scheme off the ground.”

Support provided to businesses taking part in FinanceCamp will be tailored to their needs, stage of growth and structure.

Expert advisers will work with each participant to explain all of the finance routes open to them, weigh up what fits their plans best and prepare their proposition to make it as attractive as possible to investors. Once they are fully prepared, businesses will then be introduced to a range of potential funders.

This initiative is part of a wider programme being developed with around 50 partner organisations to support innovation in the North East. Led by the Venturefest North East team, the programme is supported by Innovate UK and the North East LEP and North East BIC, with part-funding from the European Regional Development Fund.

For more information and to apply for FinanceCamp North East visit financecamp.co.uk

For the North East to make a step change we need more businesses to scale-up. We need an entrepreneurial conveyor belt of people starting businesses; people who grow the businesses they started into micro businesses; micros businesses into small businesses and so on until they become the big businesses of tomorrow – simple!

If only life was that simple, lots of things get in the way. Some people don’t want to grow and they certainly don’t want the complication of employing people – there is absolutely nothing wrong with that. Many however do hold the ambition to scale their business. They think big, have fire in their belly and want to take on the world.

Unfortunately too few realise their ambition and are left feeling frustrated. They work harder and harder but no matter how hard they try they can’t break through the ceiling and move to the next stage of growth.

So why do so many owner/managers struggle to realise the rewards for their hard work? For most the answer lies in the fact that they haven’t made the transition from working ‘in’ their business to working ‘on’ their business. No matter how hard they work, the owner/manager will only ever have limited time and energy and if they don’t let go and empower others to run the business then they are unlikely to achieve their growth ambitions. So how can they make the shift? Let’s look at what’s arguably the world’s most scalable business ever.

Love them or loathe them, McDonalds is arguably the world’s most scalable business. McDonalds serves 75 burgers every second yet in the 1940’s it was a small family restaurant. So what lead to McDonalds having over 34,000 restaurants in 119 countries?

Using lean production techniques, both Dick and Mac McDonald pioneered a highly efficient service system that not only produced food quickly but also delighted customers. The restaurant proved popular yet remained a small family restaurant for some time. So what changed?

In 1954 Ray Kroc – a milkshake salesman – visited the restaurant and was impressed with the system that the McDonalds brothers had created. Recognising the opportunity, he persuaded the brothers to franchise their restaurant concept. Rather than spend his time flipping burgers, Ray spent his time developing, documenting and refining the businesses operation and business model to enable its rapid expansion.

He dedicated his time and energy to working ‘on’ the business rather than ‘in’ the business. Ray Kroc’s decision to work on the business enabled him to develop a scalable business model through:

– Developing a scalable business model (franchising)
– Standardising systems so they can be easily replicated and ensured consistency
– Keep the number of components to a minimum with a simple menu that used common ingredients
– Develop a supply chain capable of scaling as quickly as the business
– Adopted lean production techniques to keep costs down
– Developed a consistent business operating and training system (the Hamburger University – est. 1961)

The reality is that had Ray Kroc decided to roll up his sleeves and get to work in the kitchen then McDonalds may still be a small family run restaurant. It’s therefore not just about hard work but rather dedicating the time and energy to the things that will scale your business – should you have the ambition to do so.

Colin Bell, Business Growth Director, North East LEP.
Think BIG, Think Growth Hub – www.northeastgrowthhub.co.uk

Category: Business growth and finance

North East Alliance doubles in size

North East business banking survey results released

North East BIC welcomes Jacksons Law

New £23m Vantec logistics centre and warehouse in Sunderland officially opens for business

Access to support is pivotal to business growth, says Craig Rose from Seaweed & Co

JEREMIE programme extended for North East SMEs

North East LEP welcomes latest positive employment news

FinanceCamp North East pitches as the future of investment for regional businesses

In conversation with Colin Bell, Business Growth Director at the North East LEP