smallbusiness.co.uk: Helping your business think big

It may be grim up North, but a promising report showing a resurgence in northern business prospects could be set to change the perception for entrepreneurs.

According to Royal Mail’s latest Business Barometer survey, business growth is most prevalent in the North East. Of the top ten cities attracting business, four are based in the region: Sunderland (3rd), Durham (4th), Middlesbrough (7th), and Newcastle upon Tyne (8th). Collectively they saw 500 new businesses launch and 113 move into the cities over the past six months.

According to the study, Lincoln is the number one UK hotspot for businesses moving into and starting up in an area, replacing Rotherham at top spot.

It’s all pretty surprising news, considering the slew of reports in recent months suggesting that the North’s ‘grim’ image goes hand in hand with its business prospects.

Indeed, the latest administration figures from Baker Tilly show a continued North-South divide in insolvencies with the North coming off with the worst of it.

Additionally, a study of 155 managing directors by research agency Mackman Group reveals that northern managers are more worried about their finances and have less access to funds than Southern counterparts, with only 10 per cent of Northern firms saying they are debt-free, compared to nearly a quarter in the South.

However, other findings suggest better fortunes for northern businesses. Yorkshire and Humberside, for instance, have the highest proportion of companies that make a profit, according to the Barclays Business Regional Impact Index.

Other initiatives could be set to boost the economic prospects of the North East further, with Newcastle City Council and Northumbria University planning a new business support centre in the area.

It’s encouraging to see some positive news in regard to business prospects in the North, particularly at a time when public sector cuts have hit certain areas in the North perhaps harder than other areas in the country. Let’s hope that Cameron’s vision for private sector growth can be realised through the thriving of those businesses not just confined to Silicon Roundabout.

This month at SmallBusiness.co.uk, we’re interested in the top sectors for start-ups across the country. If you are starting a business, I would love to hear all about it. Please email Ben Lobel on ben.lobel@vitessemedia.co.uk.