Category: Business growth and finance

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The ScaleUp Institute’s 2018 Scaleup Survey

The ScaleUp Institute’s 2018 Scaleup Survey is the UK’s largest survey of its fast-growing companies.

The Survey is now in its fifth year. Its influence and importance has grown rapidly, as it focuses attention on what high-growth firms most value and need.

High-growth businesses are invited to complete the survey, which should take 15-20 minutes, to share views on the main barriers to growth and what businesses need from the private and public sectors in order to continue to scale.

Complete the survey.

 

 

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In conversation with Business Growth Director, Colin Bell

In May 2018 Government launched a Business Productivity Review. The review considered the ‘firm-level’’ factors that impact productivity and how firm level interventions by the public and private sector can support business growth and productivity improvement.

Here the North East LEP’s Business Growth Director, Colin Bell, explains why this is a critical piece of work and how a collaborative approach has led the response.

Why is this review important to the North East?

The economy has been great at creating jobs, but what we are not seeing is such vibrancy in the jobs market being reflected in people’s living standards and pay packets. Central to the North East’s vision of creating More and Better Jobs is making people’s lives better. Tackling the underlying causes of low levels of productivity is therefore an essential focus for the Government and the North East LEP.

Finding the solution together

In the North East we have been working with a range of partners including the business community, academia and third sector to develop a depth of insight and evidence as to what drives firm level productivity and the approaches to business support that have generated the best results.

Our joint evidence supports the notion that higher levels of leadership skills and the adoption of technology are key drivers of productivity improvement. One of our most powerful findings is that the biggest influence on businesses is exposure to and connectivity with peers who have undergone leadership development, invested in new technology and are now realising the benefits.

This is an important review and we now look forward to working with Government and partners to mobilise our ideas through the creation of the North East’s Local Industrial Strategy.

Access the Business Productivity Review call for evidence here

Access the North East LEP’s response here

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North East LEP Regional Labour Market Statistics reaction

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to today’s regional labour market statistics.

“We are pleased that today’s data shows that employment continues to rise in the North East.

“The number of people in the North East in work has increased 2,000 over the quarter and 27,000 over the year.

“There has been particularly strong growth in employment in professional, scientific and technical activities (such as law, accountancy and architecture); accommodation and food services (such as hotels, restaurants and bars); agriculture, forestry and fishing; and arts, entertainment and recreation.

“The increase in employment opportunities has resulted in the number of people that are unemployed falling. The unemployment rate for 16 to 64 year olds is now 5.0%, compared to 6.7% a year ago and 8.0% two years ago.

“The North East has experienced the largest decrease in its unemployment rate of all English regions over the last year. It was also the region with the largest increase in its employment rate.

“Whilst our progress is great news, there is still more to be done. The North East LEP will continue to work with its partners to deliver the Strategic Economic Plan’s ambition of more and better jobs for the region.”

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£120m fund for the North East goes live

£120m North East Fund goes live

A £120m investment fund to drive local growth and job creation will now go live after the agreement was signed on 23 March 2018 by the representatives from the European Investment Bank (EIB) and The North East Fund Limited (TNEFL).

The North East Fund, supported by the European Regional Development Fund, will offer a range of investments including equity, debt and mezzanine funding in the North East LEP area, which covers County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland.

It will provide financial support for over 600 businesses, creating around 3,500 jobs over the life of the fund and delivering a legacy of up to £80m for further investment over the next decade.

Experienced Fund Managers have been appointed to manage five separate funds which will cater to the needs of businesses at different stages across different sectors. Details of the Fund Managers are expected to be announced in early April.

Helen Golightly, Executive Director for the North East LEP, which led the project team negotiating for the region, said: “We have always believed that retaining investment funds exclusively for North East companies was the right decision and are grateful to the Treasury, EIB and Ministry of Housing, Communities and Local Government for their efforts and support to the team.

“This is a fantastic achievement for the North East and all the tireless work behind the scenes has now paid off.”

Exchequer Secretary to the Treasury, Robert Jenrick, said: “This is an important step in ensuring that growth and opportunity are spread fairly across the country. The £120m investment will be a big boost to small businesses operating in the North East, driving productivity and bolstering the Northern Powerhouse’s economy.

“By generating thousands of new jobs and upskilling people across the region, the positive impact of this fund will be felt for generations to come.”

Jake Berry MP, Minister for the Northern Powerhouse and Local Growth, said: “With over £120m of investment flowing into the region, strengthening local businesses and creating thousands of new jobs, the North East Fund signals another major economic boost to the Northern Powerhouse.

“It will provide welcome finance for smaller businesses across the North East to reach their full growth potential while bolstering the Northern Powerhouse’s reputation as a world-beating location to start and grow your business.”

Jonathan Taylor, EIB Vice President, said: “The North East Fund will help to unlock entrepreneurial drive and innovation across Northumbria, Tyneside, Wearside and County Durham.  The EIB is pleased to provide £120m to support this unique initiative that will create thousands of new jobs and improve skills across the North East and replicates the proven success of similar investment across Europe.”

Andrew Mitchell, Chief Executive of the North East Fund, said: “This new Fund is a feather in the cap for the North East and a vote of confidence in our economic potential. The North East LEP’s backing has been critical to getting this across the line and we can now focus on investing on the brightest and best businesses in the region.”

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Notes to Editors

The North East Local Enterprise Partnership (LEP) covers County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland.

Our role is to drive economic growth in North East England by supporting businesses and creating more and better jobs for everyone.

Over the next decade, we aim to help the North East create an extra 100,000 jobs. An ambitious target, but one we believe is achievable working with our partners in the public and private sectors.

Our Strategic Economic Plan (SEP) for the North East outlines how we will create more and better jobs including the identification of our areas of strength, referred to as our smart specialisation areas; passenger vehicle manufacturing; subsea and offshore; life sciences and healthcare; and creative, digital, software and technology based services, and our plan to bring investment and funding to the area.

European Regional Development Fund (ERDF)

The project is receiving up to £58,500,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry of Housing, Communities and Local Government (and in London the intermediate body Greater London Authority) is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.

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Thinking global to grow the North East economy

By Victoria Sutherland, Senior Economist at the North East Local Enterprise Partnership
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As an economist working at the North East LEP, one of the questions I’m asked the most is ‘how is the North East economy performing?’

On Tuesday 6 March I had the opportunity to answer that question at the launch of the ‘Our Economy 2018’ report.

More than 200 people joined me, Andrew Hodgson, Chair of the North East LEP, and our panel of speakers to learn more about the current state of the North East economy and to consider how we build our global linkages.

It was a pleasure to see colleagues from across the business community, as well as government departments, local authorities and education at the launch.

We were able to share positive news about the North East economy and update on the good progress that has been made against the Strategic Economic Plan targets. A key highlight is that the number of jobs in the North East has increased by 55,200 since 2014, putting us on track to meet our target of 100,000 more and better jobs by 2024.

We are also particularly pleased that the employment rate and economic activity rate have increased – meaning residents are benefiting from the additional job opportunities – and that the gap with England excluding London on these measures has reduced.

The event focused on the North East’s role in the global economy and the importance of international connections. We had the pleasure of hearing from guest speaker Jason Knights, managing director of brand creative agency Blue Kangaroo, about his organisation’s international links and how thinking global has seen his company flourish.

Blue Kangaroo now work with some of the biggest brands in the world, including The Walt Disney Company and Mattel, all from its base in Gateshead.

Our panel discussion saw contributions from Marian Sudbury, Director, Global Operations for the Northern Powerhouse at the Department for International Trade and Professor Nick Wright, Pro-Vice Chancellor for Innovation and Business at Newcastle University.

We learnt more about the support and advice on offer to North East businesses looking to export and how our region’s universities have built their global connections and welcomed over 17,000 international students to the North East last year.

The North East’s excellent air and sea connectivity was highlighted as being critical for supporting our global connections. In 2016, the North East’s ports handled 5.7m tonnes of freight and Newcastle Airport handled 4.8 million passengers, 76% travelling between Newcastle and international destinations.

A questions and answer session followed with some fantastic debate around the findings in the report and a call to action by Andrew Hodgson for North East businesses to be proud of their achievements and to champion the region on the international stage.

To coincide with the publication of the ‘Our Economy’ report, the North East LEP, in partnership with the North East Combined Authority, has launched the North East Data Hub. This is a digital platform that gathers data from across the region on the economy and transport and allows users to download and compare data in a simple, user-friendly way.

To find out more information about the North East Data Hub, visit www.northeastdatahub.co.uk and for more information about ‘Our Economy 2018’ and to read the report in full, visit www.nelep.co.uk/oureconomy.

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North East region launches its own data hub

The North East Local Enterprise Partnership and North East Combined Authority have joined forces to launch a brand new website that provides live data on the performance of the North East economy and transport infrastructure.

The North East Data Hub – www.northeastdatahub.co.uk – is a one-stop-shop for the latest statistics on the regional economy and North East transport trends.

Launched to coincide with the publication of the North East LEP’s first, annual, ‘Our Economy’ report, The North East Data Hub uses live data from the North East transport and economic authorities to give a real-time picture of how the region is performing.

Victoria Sutherland, Senior Economist at the North East LEP said: “We, along with many of our partners, collect a lot of data about the North East region. By sharing this detailed information we can support residents, businesses, policy makers and other regional bodies to use the data to help grow our economy. 

“The North East Combined Authority, Traffic and Accident Data Unit (TADU), Urban Traffic Management and Control (UTMC) and Nexus are all partners of the project and have helped create the most comprehensive data resource in the North East; one that’s open to all and free to use.”

In addition to providing live data about regional transport and the economy, The North East Data Hub also has a comparison tool, allowing users to analyse data further against a range of different metrics.

Cllr Iain Malcolm, Leader of South Tyneside Council and North East Combined Authority Thematic Lead for Economic Development and Regeneration, said: “It’s important we track our progress as a region and the The North East Data Hub allows us to do that.

“We collect a host of data, everything from bus and metro usage to traffic flow and average vehicle speed. This helps us paint a picture of the regional transport system and how it must adapt over time. Combining that with economic data from the North East LEP, we have created a valuable resource for the region.”

The North East Data Hub has been designed to make all regional data available for public view and analysis. It launches on the same day the North East LEP publishes its ‘Our Economy’ report, which tells the story of the North East economy.

As new data becomes available it will be uploaded to the website providing an up-to-date picture of the North East economy and transport activity.

For more information, visit www.northeastdatahub.co.uk.

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North East LEP ONS Regional Labour Market Statistics reaction

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to today’s regional labour market statistics.

“Today’s statistics for the North East are mixed. We are disappointed to see that employment has fallen by 15,000 over the quarter. However, employment growth has been strong over the year as a whole with 25,000 more in work than a year ago and the North East having experienced the largest improvement in its employment rate of any region in the UK.

“Unemployment has declined over both the quarter and the year, with 21,000 fewer individuals’ unemployed than a year ago. We are particularly pleased to see that the North East’s unemployment rate has continued to decline over the last quarter given that it has increased across the UK.

“The decline in employment and unemployment in the North East over the last quarter has been offset by an increase in economic inactivity. Individuals can be economically inactive for a wide range of reasons including that they are in education, have health issues or disabilities that prevent them from work, have caring responsibilities or have retired.

“The number of working age people (16-64) that are economically inactive has increased by 15,000 over the quarter, although it has decreased by 8,000 over the year.

“The North East LEP will continue to work with its partners to deliver the Strategic Economic Plan’s ambition of more and better jobs and to help local residents to connect with available employment opportunities.”

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North East LEP to publish first, annual ‘Our Economy’ report

The North East Local Enterprise Partnership (North East LEP) will unveil its first annual ‘Our Economy’ report at Sage Gateshead on Tuesday 6 March 2018.

Presenting an overview of the North East economy and how it is changing over time, the new report will become an important resource for government, policymakers and businesses operating in the region.

Andrew Hodgson, Chair of the North East LEP said: “It’s important we track our progress and monitor our economic performance so we position the North East to take advantage of future developments, including those arising from the Government’s recently published Industrial Strategy.

“Our annual review of the North East economy will ensure we remain on track to deliver the refreshed Strategic Economic Plan and reach our aim of creating 100,000 more and better jobs by 2024.”

As well as providing a comprehensive look at the regional economy, ‘Our Economy’ will also look, in-depth, at a topical issue affecting the North East. In 2018 that topic will be ‘the North East in the global economy’.

Victoria Sutherland, Senior Economist at the North East LEP said: “We’re bringing an expert panel of speakers together from business, education and government to discuss the importance of international relations and what the North East needs to do to build stronger international links going forward.

“Our keynote speaker will be a North East business already trading internationally, and they will share how other regional businesses can follow in their footsteps.”

Our Economy 2018 – with insights into global connections, takes place at Sage Gateshead on Tuesday 6 March from 08:30-11:00. Places are free but must be booked in advance using the Eventbrite form

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North East LEP ONS Regional Labour Market Statistics Reaction

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to today’s regional labour market statistics.

“We are pleased to see that employment continues to grow across the North East region. Today’s data shows the number of people in employment has grown by 34,000 over the last year, with 11,000 more people in work over the quarter.

“Once a quarter we get more detailed statistics than in other months and today is one of those occasions. These additional data show that there has been growth in service sector jobs of 24,000 over the year. Within that, we are particularly pleased to see growth in the information and communications sector, which includes many of the region’s digital companies, and growth in professional, scientific and technical activities.

“We are also pleased to see that the manufacturing sector, which has always played a critical role in the North East economy, has grown, with 8,000 more jobs over the year.

“We are continuing to see unemployment decline. Our unemployment rate is now 5.2%, compared to 6.8% last year. This is the largest decline in the unemployment rate of all English regions over the year.

“The number of people unemployed is down 7,000 over the quarter and 20,000 over the year.

“There has been growth in both full and part-time workers and across both employee jobs and self-employment. This is different to the national picture, where self-employment has fallen. We have seen a decline in the number of workers with second jobs and the number of people in temporary jobs. Combined, these suggest that demand for labour is growing.

“The North East LEP will continue to work with partners to ensure individuals have the skills to take up the opportunities being created by the North East’s employers.”