A further £25.9m investment to back regional business and boost jobs

As part of North East Mayor Kim McGuinness’ plans for business growth, the North East Mayoral Strategic Authority (North East MSA) has unveiled a new regional framework that will bring together the North East MSA and the seven local authorities to deliver a simpler, more coordinated business support system.

The formation of Business North East is part of Mayor Kim’s plans to create inclusive economic growth in the region – supporting innovation and business development while creating more high-quality jobs for local people and supporting small businesses.

The programme includes an investment of £25.9 million between January 2027 and March 2029.

Mayor Kim said: “We want businesses in the North East to thrive, so we’re backing them with a new £25.9m investment to help them grow, create jobs and get the support they need.

“We know that growing a business isn’t easy, especially for small businesses and start-ups. Our new Business North East offer will provide a helping hand by making support simpler, more accessible and far easier to use right across the region.

“I know that by supporting our businesses we can create more jobs, more opportunities for our people and grow our regional economy. I want businesses to know we’re with them every step of the way and I can’t wait to see the services get up and running.”

A new regional hub led by the North East MSA will provide specialist expert advice to businesses as well as run initiatives across the region to help business owners better understand finance, get access to mentors and learn about exporting opportunities. 

Seven local authority spokes will maintain strong local relationships with businesses in communities and connect them to regional opportunities and support.

The framework will be delivered through five key programmes:

• Inspire – encouraging entrepreneurship, particularly among young people and underrepresented groups.
• Explore – helping people develop ideas and become enterprise-ready.
• Start – supporting the creation and survival of new businesses.
• Succeed – helping established firms improve productivity, innovation and resilience.
• Grow – enabling ambitious businesses to scale, create jobs, access finance and enter new markets.

Business North East has been developed by working with more than 300 businesses which highlighted the need for a more joined-up approach and easier access to support.

John McCabe, Chief Executive of the North East Chamber of Commerce and Chair of the Business Advisory Council, said: “Today’s launch of Business North East represents an important step forward for business support in the mayoral area. Designed in close collaboration with businesses, local authorities, universities and support providers, the programme is ideally placed to help more businesses in our region start, scale and grow.

“By ensuring a ‘no wrong door’ approach and inspiring more young people to think about entrepreneurship, Business North East will play a significant role in delivering good growth across the North East.

“As chair of the North East Mayoral Strategic Authority’s Business Advisory Council, I’m delighted to see our insights reflected in a programme that will make a real difference to businesses and employers throughout the region. I look forward to continuing to work with the Authority on the development of Business North East and support its official launch in January of next year.”

Matt Bratton, Regional Director, CBI, said: “Business North East is an important step towards the simpler, region-by-design approach that industry has long called for. In our North East Mayoral Business Manifesto, the CBI called for a joined-up support pathway that ends the postcode lottery, cuts through complexity, and gives every business a clear route to the right support. Bringing programmes together through a ‘no wrong door’ approach should make it easier for firms across the region to find the finance, expertise, skills, and relationships they need to start, invest, innovate, and grow.

“To be successful, Business North East must remain shaped by the experience of the firms using it, backed by strong account management, clear routes into specialist support, and continued partnership with the region’s business networks. The real test will be whether firms can get the right help quickly and use it to raise productivity, scale, and create good jobs in every part of the North East.”

Elaine Stroud, Chief Executive, Entrepreneurs Forum, said: “Encouraging more people to start and scale businesses is the single biggest thing that will change our region's economy. Business North East is about giving entrepreneurs a clear route through the support that's meant to help them. We've been part of shaping it, and from January we'll keep playing our part building a community where entrepreneurs who've already done it help the next generation go further.”

Katy Scott, North East Regional Business & Stakeholder Manager at Federation of Small Businesses, said: “FSB is excited about the launch of Business North East as our members have been crying out for a streamlined approach to business support to make the process for small businesses clearer and easier. This new approach will benefit small businesses across the North East wherever they are based and whatever stage they are out.”