Support for region’s SMEs is key
Date published:
The Chamber’s latest column for The Journal by Erika Armanino, knowledge and research executive:
The North East Combined Authority (NECA) and council leaders from Northumberland, County Durham, and Tyne and Wear have just backed a £70million investment programme designed to give small and medium-sized enterprises (SMEs) across the region a much-needed boost.
This funding is expected to create 3,000 jobs over the next 15 years, helping to close the estimated £28million gap between what SMEs need and what’s currently available. The combined authority also said that a £390million investment in SMEs is expected overall over the next 15 years.
While the £70m investment offers much-needed support, securing finance remains one of the biggest issues for SMEs. Many small businesses, especially those in rural areas, still face barriers when it comes to accessing the capital needed to grow, innovate, or invest in new technology. Without the funds to back their business plans, these companies struggle to compete on a national, or even global scale, despite the growing demand for their products and services.
Workforce development and recruitment remains a key issue for SMEs. Although the region has made significant progress in job creation – largely thanks to regeneration projects and growth in sectors like green energy – many businesses continue to face a skills shortage. Areas like advanced manufacturing and digital technology are expanding, but SMEs often have trouble finding and keeping the right talent.
To help bridge this gap, the North East Chamber of Commerce is working through the Local Skills Improvement Plans (LSIP), a government initiative aimed at aligning education and training with the actual needs of businesses. By collaborating with educational institutions and industry leaders, the Chamber is working to create targeted training programmes that equip workers with the skills SMEs and other businesses need. This partnership ensures that the younger generation has practical, job-ready experience, especially in high-growth areas like technology and green energy.
With an estimated £390million to be invested in SMEs over the next 15 years, the North East’s SMEs will have a better chance to grow, innovate and play a crucial role in the region’s long-term economic boost.