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North East LEP business support platform successful in creating jobs and economic growth

An independent evaluation of one of the region’s leading business support platforms has shown its support for North East businesses has led to an increase in jobs, productivity and economic growth.

Organisations that received support from the North East Growth Hub, which is managed and delivered by the North East Local Enterprise Partnership, saw, on average, a 41% increase in employment, a 22% increase in turnover, and a performance increase of £8.8k per employee one year after receiving support.

The evaluation, which was carried out by Technopolis Group, also found the North East Growth Hub has been successful in curating and simplifying the business support landscape, making it easier for organisations to access finance, navigate economic shocks – like the COVID-19 pandemic and EU exit – and better understand their individual needs.

Lucy Winskell OBEChair of the North East Local Enterprise Partnership, said: “Since it was launched in 2014, the North East Growth Hub has been a lifeline for thousands of North East businesses.

“Between April 2018 and March 2022, more than 115,000 North East businesses have received personalised, tailored support from the North East Growth Hub, with thousands more accessing impartial advice via the website, northeastgrowthhub.co.uk.

“One area of the evaluation I’m particularly proud of is the recognition that the support provided by the North East Growth Hub is person-oriented, and that businesses feel the triage team and North East Connectors are ‘friendly insiders’; able to understand what businesses need, and how to find it.”

An econometric analysis of the North East Growth Hub looked at the business support platform’s success in delivering economic growth, increasing turnover, and improving performance in the North East economy. 

It found businesses that received support from the North East Growth Hub employed up to two new members of staff after one year, whilst businesses that didn’t receive support from the North East Growth Hub saw close to zero employee growth. Businesses aged five years or less saw an 8% increase, and SMEs with fewer than 50 employees saw a 5% increase in employment, compared to 3% for larger businesses.

Business that engaged with the North East Growth Hub also saw a significant rise in their turnover. After one year, the average increase was £378k (22%), compared with £81k (6%) for businesses that didn’t receive support. Companies operating in the manufacturing sector earned £291k more, the professional services saw a £234k increase, and businesses operating in the wholesale and retail sector reported a £170k increase in turnover. A third of businesses saw an average annual increase equivalent to £100k or higher.

The North East Growth Hub had a positive impact on the productivity of the region’s economy too, with businesses reporting, on average, an increase of £8.8k per employee one year after receiving support, compared with £0.3k for non-supported businesses. Over a three-year period, the amount of turnover per employee increased on average by £2.3k. The impact was highest for manufacturing businesses (£3.6k), followed by wholesale and retail (£3.3k), and professional services businesses (£2.5k).

Ammar Mirza CBE, Chair of the Business Growth Board at the North East Local Enterprise Partnership, said: “It’s clear from this report that the impact of the North East Growth Hub on business growth and the region’s economic prosperity is far and wide-reaching.

“The North East Growth Hub has been successful in taking an often complex and confusing business support landscape, and making it clear and accessible. With further investment, it can continue to deliver on government’s ambition to level up the country, and provide the kind of human-centered, personal approach businesses want and need.

“Our approach to business support is one that works, and the North East Growth Hub is a hugely important asset for the region’s business community. It’s a trusted partner that brings business support providers together in one place. That coordination role for the business support ecosystem in the region is one of the reasons for its success, and now is the time to invest in its future; for the benefit of our region’s business community, and the economy as a whole.”

The North East Growth Hub is one of the best performing Growth Hubs in the country, with businesses that have engaged seeing average employee growth reaching 17%, compared with the national average of 14%. The 22% average increase in turnover of North East businesses also exceeds the national average of 17%. 

In addition to providing a point of access for organisations seeking business support and finance and funding, the North East Growth Hub also works with partners to deliver a number of nationally-funded business support programmes, including Made Smarter Adoption North East, High Potential Startups and the Peer Networks programme. The North East Growth Hub has played an integral role in the creation of some of the region’s leading business support services, including Scaleup North East, Supply Chain North East, and the Scaleup Leaders Academy, and it is also part of the regional Growth Hub cluster. 

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