NW Growth: Diversity to drive region forward

THE wide variety of business sectors in the region and its strong export credentials are its key strengths and offer a solid platform for the future, according to our new report on Boosting the North West Economy, produced in association with Barclays.

This was the consensus of business leaders, entrepreneurs and economists attending a roundtable discussion in Manchester to debate future growth prospects for the region.

Click here to download our 24-page report, Driving North West Growth in association with Barclays.

While Cumbria has tourism and nuclear, Lancashire aerospace and chemicals, Cheshire financial services and biotech, the most dynamic growth areas for Greater Manchester are creative digital and media and business and financial services, while in Merseyside it is maritime, manufacturing and green-tech.

Building on such pillars of strength, either by exporting goods and services to international markets, or by wooing overseas inward investment to underpin growth here, are essential requirements for 21st Century businesses.

To ensure the North West thrives a number of challenges need to be addressed though. In particular a larger pipeline of new businesses needs to be encouraged, while there should be clearer signposting to the business support and finance available.

CBI North West regional director Damian Waters said: “For a region of this size the North West does not have enough businesses. A lot of businesses are started but their sustainability is poor after five years.

“We are level pegging with the rest of the UK for starting businesses up but for sustaining them past five years we are not so good.”

The issue of business confidence, particularly among medium-sized firms is a critical factor to be addressed.

Michael Hartig, head of North West Corporate Banking at Barclays said: “The issue isn’t availability of support but business confidence and knowing where to go.

“Certainly with what we are seeing at the larger end of the market, business has really picked up considerably, so I expect to see that confidence trickle down to SMEs in time.”   

Simon Allport, North West managing partner at Ernst & Young, said: “I’m on the board of Manchester Solutions, which lends small amounts to businesses and we should lend more, but it is because of a lack of demand. Why? Signposting, yes, but also a lack of confidence in the smaller enterprise.”

Ian Riggs, corporate partner at law firm Hill Dickinson agreed: “The SME sector is almost sitting on its hands before looking for funding or M&A activity.

“They are sitting and waiting when actually they are probably good businesses that could get funding. There is lots of interest and initial activity and people even going to due diligence but a lot will either stall or not come off – that’s down to a lack of confidence.”

Click here to download the Driving North West Growth report.