More businesses are choosing to set up in the North-East

The number of businesses in the region has risen by more than 12 per cent to 150,655, according to the latest figures from the Department for Business Innovation and Skills.

As the national business population passed five million for the first time, the North-East recorded the second highest increase in the country.

The figures revealed there were 701 businesses for every 10,000 people in the North-East and that more than 74 per cent have only one member of staff. However, the region is behind the national average in England where there are 984 businesses per 10,000 people.

Nigel Mills, the chairman of the Entrepreneurs’ Forum, welcomed signs that the region is on an upward trend. He said: “Real growth in the economy and in employment comes from private, entrepreneur-led businesses.

“While we continue to see the proliferation of smaller, non-employing businesses, brought about by changes in the economy in recent years, many new businesses such as these, have future growth potential and the entrepreneurial spirit of those who have chosen to go it alone should be encouraged.”