A £25.9 million investment aimed at helping firms grow, create jobs and access support more easily is set to transform the business landscape across the North East.
The funding will support Business North East, a new regional framework developed by the North East Mayoral Strategic Authority (MSA) as part of North East Mayor Kim McGuinness’ business growth plans.
Business North East aims to deliver a more coordinated and accessible business support system, developed in partnership with the region’s seven local authorities.
North East Mayor Kim McGuinness (Image: Michael Sreenan)
Kim McGuinness, North East Mayor, 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."
The investment will be delivered between January 2027 and March 2029, focusing on inclusive economic growth, innovation, and high-quality job creation.
A regional hub led by the North East MSA will deliver specialist advice to businesses across the area, offering guidance on finance, mentoring, and exporting opportunities.
Seven local authority spokes will maintain close relationships with businesses at a community level, connecting them to regional resources and support schemes.
The framework will be delivered through five core 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 (improving productivity, innovation, and resilience in established firms)
- and Grow (enabling ambitious businesses to scale, access finance, and enter new markets).
More than 300 businesses helped shape Business North East, emphasising the need for a more joined-up, accessible support system.
John McCabe, chief executive of the North East Chamber of Commerce and chair of the Business Advisory Council, welcomed the announcement.
Mr McCabe 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."
Industry leaders also praised the collaborative, streamlined approach.
Matt Bratton, regional director at the 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."
He also emphasised the importance of keeping the scheme user-focused.
Mr Bratton said: "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."
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Other business leaders highlighted the potential for economic transformation.
Elaine Stroud, chief executive of the 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."
The Federation of Small Businesses also welcomed the launch.
Katy Scott, North East regional business and stakeholder manager at the FSB, 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."