Paul McEldon OBE, Chief Executive of the North East BIC, shares his thoughts on the UK Government’s Backing Your Business plan.
We’ve spent over 30 years supporting people to take the brave step into business.
During that time, we’ve helped over 7,000 people start up and have hosted over 1,100 small and growing businesses across our four centres.
So, when the Government finally published its plan for small businesses, we thought we’d break down the key points and reflect, not just on what’s been said, but on what it means for our region and the people we serve.
The recently published Backing Your Business strategy covers many of the areas you’d expect – late payments, exports, innovation and better coordination between national and local support providers. These are all laudable and necessary. But what stands out most is the recognition of small businesses as a distinct and vital sector of the economy.
Empowering small businesses
Small and medium sized businesses make up over 99% of the UK economy.
While inward investment is important, it’s small businesses that drive the majority of job creation and local wealth. Every large business was once small – and it’s encouraging to see this acknowledged in policy.
Even more welcome is the recognition of pre-start and start-up businesses as key drivers of economic growth. The ScaleUp Institute has shown that the number of scale-ups in a region is directly linked to the size of its business stock.
The North East has traditionally had one of the lowest business stocks in the country, so breaking down barriers to entry – especially for women, ethnic minorities, disabled people, and the unemployed – is not just good policy, it’s essential for regional prosperity.
Recognising female-led businesses
Women’s enterprise is rightly identified as an area of untapped potential.
At the BIC, we’re proud that 50% of our start-ups in 2024/25 were women-led, a significant leap from the 24% when we began 30 years ago.
Progress has been made, but there’s still more to do. We welcome any initiative that helps women explore entrepreneurship and access the support they need to succeed.
Nurturing tomorrow’s entrepreneurs
The strategy’s focus on enterprise education is another positive step.
We’re already working with universities, colleges, and some schools to deliver enterprise programmes – but there’s scope to do more.
Embedding entrepreneurial thinking early helps young people see business as a viable and exciting path, and we’re keen to expand our reach in this area.
Addressing finance and support
It’s good to see Start-Up Loans extended, they’re a valuable resource for new entrepreneurs.
But these are personal loans, and without solid business advice and planning, the risks can increase. Finance must be matched with robust support to ensure long-term success.
We also welcome the strategy’s emphasis on mentoring and peer learning. These are powerful tools for building confidence, resilience, and networks – especially for those starting out.
Supporting co-operatives and mutuals
As a regional expert in co-operatives and social enterprise, we’re pleased to see their role in the business ecosystem recognised.
These models offer inclusive, community-driven approaches to enterprise, and we’re ready to support efforts to grow their reach.
Going forward…
We look forward to seeing these initiatives rolled out in the coming years and working closely with the Mayoral Authority to ensure they have maximum impact on the regional economy.
The North East has the talent, the ideas, and the drive. With the right support, we can turn potential into progress – and ensure that entrepreneurship is not just for the few, but for anyone with the ambition to start.
As these plans take shape, we hope the Government will back its ambitions with additional resources for business support services. Practical, on the ground support is what turns policy into impact. With the right investment, we can build a stronger, more inclusive enterprise support system that empowers people to start, grow and thrive.