News Article

A business start up initiative with financial investments for equipment is to support over 700 new enterprises in North East England, creating 100 new jobs and safeguarding 330 others over the next two years.

The North East England Investment Centre (NEEIC) is launching the £4.63m project to increase the number of fledgling businesses within the region, helping them achieve stability and growth more quickly by offering direct financial support to meet their needs.

Eligible small and medium sized enterprises (SMEs) will be able to access resources to obtain vital capital equipment to remove one of the main barriers faced by entrepreneurs who are looking to develop the potential of a high growth business.

The project is being part financed by the European Regional Development Fund 2007-13, securing £2m ERDF investment through regional development agency One North East.  The agency is contributing a further £400,000 from its Single Programme.

The maximum investment available will be £3,000 to enable new businesses to develop innovative technologies or expand quickly to take on additional staff.  Investments will support half the cost of the equipment purchased.

“The primary beneficiaries will be early stage businesses which require intensive start up support through the Business Link and NEEIC services,” explained NEEIC Operations Manager Irene Earle.

“New businesses in their first trading year will have access to direct financial support to invest in small scale capital equipment and plant.  That includes the purchase of manufacturing machinery, essential office equipment, ICT capital equipment and specialist software.”

Delivered through the North East England Investment Centre (NEEIC), a targeted, tailored approach will reflect particular barriers to developing newly established businesses. 

“The Regional Economic Strategy identifies the need to create more new businesses to raise the economic performance and prosperity of the region,” added One North East chief executive Alan Clarke.  “This requires an enterprise surge backed by substantial investment from Europe, encouraging more people to consider self employment and business creation as a viable and rewarding option.”

The ERDF 2007-13 programme is bringing over £300m into North East England to support innovation, enterprise and business support.  It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1bn per annum.

The project delivers Intensive Start Up Support funded as part of Solutions for Business, the Government’s package of publicly funded business support designed to help companies start and grow.

For information on the wide package of support available to regional companies, call Business Link on 0845 600 9006 or visit www.businesslink.gov.uk/northeast