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Supporting North East businesses through the coronavirus pandemic and EU Exit

By Helen Lee, Programme Manager – Growth Hub, at the North East Local Enterprise Partnership

Managing and running a business over the past two years has been a truly unique experience.

The combination of the coronavirus pandemic and the UK’s exit from the European Union has resulted in one of the biggest global economic shocks in our lifetime, leaving many businesses in need of support, advice and guidance to help the weather the storm.

As one of the leading business support and finance and funding platforms in the region, the North East Growth Hub has had a vital role in the North East’s economic response. To better understand the North East Growth Hub’s role in supporting businesses during COVID-19 and the UK’s departure from the EU, the North East Local Enterprise Partnership commissioned Steer Economic Development (Steer-ED) to produce a detailed case study as part of its evaluation of the North East Strategic Economic Plan. The North East Growth Hub is a key strand of activity within the Business Growth programme of delivery, which helps deliver the ambitions of the Plan. The case study is based on survey feedback from the region’s business community, and business support, finance and funding providers.

It shows the coronavirus pandemic caused a huge spike in demand for business support services as employers struggled to navigate the flurry of announcements and guidance released by government. And it was largely micro businesses – those with less than ten employees – that came to the North East Growth Hub for support and advice.

Despite the rise in demand for our services, response rates and satisfaction rates have consistently remained high, even at a time when many businesses reaching out to us were ineligible for the support they had hoped for. 73% of respondents said they were satisfied or very satisfied with the North East Growth Hub, and a third of businesses that contacted us during the pandemic received a response on the same day.

Interestingly, 69% of businesses that responded to the survey were first time users of North East Growth Hub, which demonstrates the widespread impact of COVID-19 on the region’s business community. Whilst the effects of the pandemic were the main driver for many of these businesses reaching out to us, it has allowed us to signpost other business support and finance and funding services available to them.

The volume of information aimed at businesses during the pandemic has been overwhelming for many, so it’s positive to see 77% of businesses rated the quality of content on northeastgrowthhub.co.uk as good or very good. It was essential for us to make sure content from government and other partners was accessible to all businesses, and delivered in a timely and efficient manner.

I’m also very glad to see the hard work of our Growth Hub Connectors recognised in the case study. As well as providing business support and finance and funding advice, Connectors were also there to listen. At the height of the pandemic there was a lot of uncertainty, which left many business owners feeling vulnerable and anxious about the future. The Growth Hub Connect team spent time listening and talking to businesses so they could better understand their individual circumstances.

As a result, 83% of respondents said they would likely re-engage with the North East Growth Hub and refer people in their network to the service. I think that’s testament to the team’s ability to positively impact and support North East businesses at a crucial time. There were some very emotive conversations with business owners, and I’d like to personally thank the Growth Hub Connectors for the extra time they spent with clients to help understand and resolve the very difficult challenges businesses were facing.

As well as highlighting feedback from businesses that engaged with the North East Growth Hub, the case study also reflects on comments from our Provider Network, which is the collective of business support and finance and funding providers we signpost North East businesses to via the Growth Hub. All respondents said they were happy with their relationship with the North East Growth Hub. This is wonderful to see as we consider our network of business support, finance and funding providers as an extension of our team. We very much felt like we were all in this together.

To have a trusted network of partners during the pandemic was very important as that open dialogue ensured we could deliver the right support to businesses. It also helped us better understand the offer from providers.

As we begin to emerge from the coronavirus pandemic and demand for support in this area reduces, we recognise that businesses will use the North East Growth Hub in different ways. The conclusions and outcomes in the report discuss this change in behavior in more detail, and how the North East Growth Hub can continue to provide the support businesses need.

If you’d like to know more about the North East Growth Hub, please visit northeastgrowthhub.co.uk or book an appointment to speak to a Growth Hub Connector. Our team has expanded during the coronavirus pandemic and we’re here to help businesses right across the North East LEP area.

There’s a huge amount of support available in our region for people looking to start or grow a business, so please get in touch to find out how we can help you on your business journey.

North East LEP Growth Hub: Responding to COVID-19 and EU Transition Case Study is available to read on the North East LEP’s Evidence Hub.

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New reports on North East economy reveal impact of COVID-19 and EU Exit

The North East Local Enterprise Partnership has published two new reports, one, an annual state of the region report and the other exploring the impact of COVID-19 and EU Exit on the North East economy.

The LEP’s annual Our Economy report has been published in two parts in 2021. The first report tracks the long term performance of the North East LEP economy across a range of key economic indicators and provides an overview of how it is changing over time.

It also includes an update on progress towards the North East LEP’s aim of bringing 100,000 more and better jobs to the region by 2024, and analysis of the impact of emerging policy priorities, like levelling up and decarbonisation, on the North East.

The second report provides a comprehensive and in-depth look at the national and regional data, research, insights and commentary that shows how COVID-19 and EU exit has impacted the regional economy. Drawing on a range of additional and innovative sources of data, ‘Our Economy: Insights into the impact of COVID-19 and EU transition on the North East Economy’ gathers intelligence on the impacts of the pandemic and EU exit on the North East economy from March 2020 to the current day.

Lucy Winskell OBE, Chair of the North East LEP, said: “This year, perhaps more than any other, developing our shared understanding of change in the regional economy is crucial.

“The work we have done to track, analyse and interpret data and evidence about the performance of our regional economy is central to our role at the North East LEP and a core part of the support we offer our partners.

“It is integral to our economic leadership, our influencing work with government, and underpins our investment decisions and stewardship of public funds, ensuring that regional programmes of delivery are targeted at addressing the key opportunities and challenges we face.”

The reports state that whilst the short-term impact of COVID-19 on the North East was highly disruptive and challenging, the region has continued to sustain increased levels of employment compared with its baseline in 2014, with continued growth of the proportion of better jobs – managers, directors and senior officials; professional occupations; and associate professional and technical occupations – in the region.

They also show the impact of COVID-19 on business and the labour market has been significant. Some sectors, including retail, culture and hospitality, have seen severe changes. Local, regional and national intervention has had an impact in protecting businesses and jobs, but the impact now many of these support measures have ended is unclear.

Inequalities within the region have been exacerbated by the pandemic too, with employers in many industries struggling with skills shortages.

The reports also include data showing that the region’s engagement with the global economy is changing, with the impact of EU Exit creating barriers to trade and the future trading environment still evolving.

Our Economy 2021 also looks at the performance of our programmes and sectors – which have been identified as areas of opportunity for the region, including health and life sciences, digital and energy.

Richard Baker, Strategy and Policy Director at the North East LEP explained: “The economic shock has accelerated a number of opportunities for the North East, with growth and new jobs in some of the key areas of strength and opportunity we have been focused on – in energy, life sciences and digital industries for example.

“Many firms across the economy have changed their operational models, with rapid deployment of digital technology, changing approaches to delivery of goods and services locally and growth in online exporting. There are genuine opportunities for the region to drive forward greener businesses and to drive productivity.”

The evidence provided by Our Economy is used to inform the work of the North East LEP and partners across the region in delivering the North East Strategic Economic Plan – the roadmap for increasing economic growth in the North East.

Our Economy 2021 is available to view on evidencehub.northeastlep.co.uk.

Our Economy: Insights into the impact of COVID-19 and EU transition on the North East Economy is also available to view on evidencehub.northeastlep.co.uk.

The North East Strategic Economic Plan can be read at northeastlep.co.uk.

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New business survey launched to assess impact of EU exit and coronavirus pandemic in the North East

The beginning of 2021 has been a challenging start to the year for many businesses. England entered another national lockdown at the end of December, and the UK’s exit from the EU on 31 December brought new rules and regulations impacting all businesses that operate in the European Union.

Because of this we have launched a brand new survey on the North East Growth Hub to find out how our region’s businesses have been impacted by the UK’s new trading agreement with the EU, and the ongoing coronavirus pandemic. We want to find out what preparations, planning and changes organisations have been able to make during this very difficult time.

All the information shared with us will be fed back to government, ensuring North East businesses get the help and support they need.

One of the main things we want to understand is how the UK’s exit from the EU – and its new trading agreement with the bloc – has affected businesses in the North East. We know from previous surveys that many regional businesses had not prepared for the new rules, which came into force on 01 January this year. We’d like to know what the impact has been in areas such as customs procedures, paperwork relating to imports and exports, supply chain disruption, and data storage and transfer. We are also keen to know if this has opened up any new opportunities for businesses.

The coronavirus pandemic continues to be the main concern for most businesses in the North East. A large proportion of our region’s businesses have been forced to close because of the new national lockdown, and business owners have to – once again – look to new, innovative ways to engage with their customers.

Through this new survey we’d like to understand what measures businesses have taken to shield some of the impact of COVID-19; whether that’s been through stockpiling, furloughing staff, adopting new technologies, or introducing new products and services.

We’d also like to know if businesses plan to retain any of the changes they’ve made after we emerge from the pandemic, for example, remote working, or a greater focus on online retail.

Businesses can also let us know if they have benefitted from any of the government’s financial interventions, including the Coronavirus Job Retention Scheme, Bounce Back Loans, and grant payments. Importantly, we’d like to know from businesses if they think some of these measures should continue.

The final part of the survey focuses on business resilience. We know many North East businesses have made huge changes to adapt to our current situation, and we’d like to know the type of measures businesses have introduced. It could be a greater investment in IT and digital, more focus on crisis planning, investing in staff training, or introducing e-commerce. Whatever changes businesses have made, we’d like to know what they are and how effective they’ve been.

All the information we gather through this new survey will help us deliver the right support, to the right businesses, at the right time. The survey takes approximately 10 minutes to complete and all the information supplied will be treated confidentially.

You can access the Understanding how EU Transition and COVID-19 is impacting your business survey via this link.

Thank you in advance for sharing your feedback. If you have any questions about the survey you can contact us by emailing [email protected].

And do please remember that North East businesses looking for free, impartial, one-to-one business support and advice can book an appointment with our Growth Hub Connectors via www.northeastgrowthhub.co.uk. The Growth Hub Connect team can guide you through the business support, and finance and funding available to help your business thrive in 2021.

By Emma Ward, Research and Evaluation Manager at the North East Local Enterprise Partnership.

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Statement from Lucy Winskell OBE, Chair of the North East LEP, on today’s EU trade agreement

This afternoon the Government announced a trade agreement between the UK and the EU.

Lucy Winskell OBE, Chair of the North East Local Enterprise Partnership, commented: “We welcome the news of the deal between the UK and the EU and hope that it will provide clarity for businesses, and a continuation of trade between the North East and partners in the EU, and beyond.

“As details of our new trading relationship become clear we will continue to work with businesses and partners across the region, helping businesses to take advantage of opportunities and building a bright future for the North East.”