Business & Enterprise North East boost to regional economy
New figures have revealed leading business support specialist Business & Enterprise North East’s (BE-NE) impact on the region.
An independent evaluation has shown that BE-NE support, funded by Regional Development Agency One North East (ONE), contributed £73.2m of additional turnover and generated £31.1m of net additional Gross Value Added for North East businesses in 2008/09. BE-NE operates the Business Link Service and the North East England Investment Centre, on behalf of ONE. BE-NE also operates the Regional International Trade Office and the North East Employer Coalition.
The evaluation report also highlighted BE-NE’s efficiency and cost savings. Annual efficiency cost savings for the North East Business Link service post April 2007 – when BE-NE began operating the service – continue to be in the region of £2.3m. Back office costs have also been reduced from 25 per cent to 15 per cent as a percentage of total costs.
Alastair MacColl, Chief Executive of Business & Enterprise North East, said: “The real impact our services are having on the region’s economy is very significant, and this report provides independent evidence that our support is worth £4.63 for every pound of public sector funding that is invested. This is real help to business - giving them the best possible start and helping them develop to their full potential.
“Although the economic climate has changed considerably over the past 18 months, we have continued to add to and strengthen our portfolio of services to make sure businesses in the region, regardless of size or sector, are armed with the tools to thrive and grow. Our aim is to ensure that the North East remains one of the best places in the UK to start, succeed and grow a business.”
The support provided by the Business Link service, includes a comprehensive assessment of strengths, weaknesses and recommendations for future developments; skills support advice, with guidance and direction on training and staff development; and a substantial programme of workshops and events throughout the region.
The service is underpinned by a dedicated team of advisers, many of whom have direct experience of running businesses themselves, and have developed a deep understanding of the firms they work with and a practical knowledge of the issues they face.
The North East England Investment Centre (NEEIC) – which is accessed through Business Link advisers – offers a range of investment support through various funding streams to new and established businesses. Since launching in April 2007, the service has helped thousand of businesses across the region.
Ian Williams, Director of Business and Industry at One North East, said: “Clearly, to generate more than £4.50 for every £1 of public sector cash is a significant return on investment, and stands testament to the support which Business and Enterprise North East gives to the region’s business community.
“One North East and Business and Enterprise North East will continue to work together to ensure businesses across the region are best placed for the future as we emerge from what has been a challenging time for the regional economy.”
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Notes to editors:
• Figures are taken from an independent evaluation report conducted by WM Enterprise, commissioned by One North East.
• *Gross Value Added
Gross Value Added is the aggregation across the whole economy of the value added of individual businesses.
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