Business support is a crucial factor in promoting regional economic growth.  Assistance is available to people wishing to start a business, who may have an idea, but lack business skills or knowledge; alternatively a range of support is available to established firms who may be looking to enter new markets or modify their operations in some way.  It is estimated that there are around 3000 publicly-funded business support schemes available in England. 

The problem is that businesses are confused and put off by the complex and fragmented array of services on offer.  The majority of business support schemes are also engaged in marketing activities, competing with other support providers for similar audiences.  All of these factors have in some instances led to inconsistency in coverage and quality.  The government hopes to make the system much clearer, with a target of reducing the business support system to no more than 100 schemes by 2010.

The Department of Trade and Industry plans to make Business Link the primary route to publicly-funded business support, and is currently consulting with business on how Business Link can be developed to play this role.  The newly streamlined business support structure, easily accessed through Business Link, will involve a consistent set of publicly funded support schemes falling into the following categories:-

• Starting up
• Access to finance
• Management, recruitment and people development
• Operations and efficiency
• Product development
• Sales and marketing development

The government aim is that all business support will eventually fit into this framework, which is seen as being more suited to business needs, presented in a way that makes more sense to the customer.  The changes will also promote co-ordination and shared contracts, which would result in less spending on overheads and marketing, and more on the services offered.

The impact of good business advice is rewarding for the region as a whole.  Business survival rates are improving at an encouraging rate in the North East, which is to some degree a result of better information and guidance.  As well as representing more secure employment in the area, good survival rates are also encouraging investors into the region who will help the local economy to progress.

Fact File

• Each year the DTI invests over £400m assisting businesses through grants, loans and subsidised consultancy.

• 800,000 businesses visit the Business Link website every month

• The Business Link website contains over 2,800 potential sources of help, with particular schemes targeted at achieving best practice in business.