BUSINESS 13th May 2008

There is evidence of improvement BUSINESS Business Chapter Economic Performance Business Stock Research & Development Trade North East economy has historically performed less strongly than elsewhere in England There is evidence of improvement Generally the gap is closing between the North East and the national average

Gross Value Added GVA (£bn) £38.8 bn

Gross Value Added % change in GVA from previous year

GVA per Head GVA per Head £19,063 £15,177

GVA per Head RES Target GVA per Head - Projections

GVA by Industrial Sector % of regional GVA Compared to UK Economy Similar More Similar Less Much Less Much More

Business Stock Businesses per 10,000 population 399 237

Business Stock Businesses per 10,000 population Projected Values RES Target 2016 RES Target 2016

Business Survival % of businesses surviving 3 years 71.3% 70.4%

Business Survival % of businesses surviving 1 and 3 years

Total Entrepreneurial Activity The proportion of the adult population engaged in entrepreneurial activity such as starting or expanding a business is known as Total Entrepreneurial Activity (TEA) Levels of TEA in the North East are below the national average – although rates tend to fluctuate If the region is to see growth in business stock it would be expected that TEA would rise

Productivity Productivity – Output per Hour Worked

Productivity Productivity Index – Output per Hour Worked Projected Values

International Trade Import and Export Value as % of GVA 23.3% 17.4%

BUSINESS North East has lower levels of GVA and GVA per head than most other regions There are also lower levels of businesses per head of population and entrepreneurialism However, data shows that growth is greater in the region than elsewhere If current trends continue then the region will continue to improve and continue to ‘close the gap’ on the rest of the UK