Small business leaders say support for smaller firms will be crucial to levelling up the North.
A report by the Federation of Small Businesses (FSB) calls for action on infrastructure, green investment, skills and funding to help SMEs across the North to fulfill their potential and boost the region’s economy. The report - called An Entrepreneurial North - says that small firms account for almost 20% of the Northern economy, but argues that previous attempts to spark growth in the region have focused on larger global businesses.
It says backing for locally-owned Northern SMEs would create longer-term employment prospects, but needs “effective and meaningful interventions delivered to nurture an entrepreneurial culture”.
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In particular, the FSB called for greater investment in transport infrastructure, after surveys found a majority of Northern firms saying the region’s road network and public transport systems do not meet their needs. The organisation also wants help for firms in accessing finance, supporting net zero initiatives and improving broadband connectivity.
Mohammed Hussain, FSB policy representative for the North, said: “Businesses across the North of England already play a major role in creating jobs and generating sustainable economic growth, and by doing so they are helping to rebalance the UK economy. To achieve the ambitious aims set out by Government in its Levelling Up White Paper, Northern entrepreneurs will be the key to our success.
“This report brings together proposals from small business owners right across the North to form a clear and cohesive approach to supporting businesses, creating an entrepreneurial culture, and reinvigorating our communities. Our ambition is simple. We want to make the North of England the best place in the UK to start-up, scale-up, and run a small business.
“We want people across the UK, and indeed the world, to truly recognise the North of England as a powerhouse for small business enterprise and growth. It is only by nurturing and encouraging entrepreneurship and investing in Northern infrastructure that we believe the Government will be successful in increasing the growth rate of this economy.”
The FSB report has been compiled after a series of roundtables held around the North in recent weeks. It has called for targeted support to encourage entrepreneurialism in diverse communities including ethnic minorities, female entrepreneurs, and disabled entrepreneurs, as well as providing help to smaller firms to create jobs in ‘hard to reach’ communities.
The report found that 70% of Northern SMEs are struggling to recruit, and say that finding the right candidate with the personal skills suitable for their business is their biggest challenge. But just over a third (34%) of small firms locally don’t feel that they have the capacity to train apprentices.
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