The High Growth Small Business Report 2015 highlighted that in the North East LEP area 420 high growth small businesses employing 15,500 people with a combined turnover of £1.8 billion generated approximately 33% of GVA growth during 2014. That’s less than 1% of the business population generating one third of economic growth.
It’s estimated that 25% more scaleup businesses in 2015 would have created 2,786 additional jobs and £130 million in additional GVA.
Recognising the contribution such businesses make, and further economic benefits scaling up could bring, means we have one clear goal:
To create an ecosystem that enables more businesses to scale and to increase the density of scaleup businesses in the North East by 50% by 2024, creating 6,000 additional jobs.
In order to do this, we will prioritise our attention on:
- Enabling more businesses with scaleup potential to achieve scaleup levels of growth.
- Supporting existing scaleup businesses to continue scaling, with a particular emphasis on supporting more businesses to scale past £3 million turnover.
Our approach is therefore centred on delivering two strands of activity that target these specific challenges whilst remaining flexible to specific business needs:
Turning scaleup potential into scaleup performance
We are building on best practice approaches (such as the Goldman Sachs 10,000 Small Businesses programme) that enable businesses with scaleup potential to achieve scaleup performance.