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North East sees biggest rise in high-growth companies nationwide

The number of high-growth companies in the North East rose by 25.5% in the year to March 2014, to reach 19.2% of companies with revenues between £2.5m and £100m.

Apart from Northern Ireland, which recorded a 2% rise, the North East was the only region to see a rise in the number of high-growth companies, bucking the trend for the country as a whole.

This Entrepreneurs Index is the sixth in a bi-annual series tracking the entrepreneurial life cycle across the regions of the UK, using data to measure start-ups, growth and business exits.

The research showed that there was also a 5.3% rise in the number of enterprises in 2014, making the North East home to 59,000 enterprises.

However, the report showed that while the North East’s start-up and growth activity maintained positive momentum last year, North East entrepreneurs are falling behind when it comes to the final, wealth creation moment of their journey, with the number of deals resulting in at least £200k of individual wealth creation falling by 36.2% to just 30 deals, the lowest of anywhere in the country.

This may indicate that North East businesses are in a different phase of the entrepreneurial journey in comparison to other regions, with more focus on consolidating and growing the business, rather than on realising its wealth.

Andrew Miller, Regional Director, Barclays Wealth and Investment Management, North East comments on the report findings: “It is encouraging to see that the North East is bucking the trend for the country as a whole and leading the way in terms of the rise in high-growth companies.

“This shows that for many individuals in the North East, running their own business is now becoming an aspirational career choice, and an important driver of growth and employment opportunities in the region.

“With this rise accompanied by an uplift in the number of enterprises, it is clear that a favourable climate is being created for budding business owners in the North East.”

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