1. BUSINESS
13th May 2008

2. 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

3. Gross Value Added
GVA (£bn)
£38.8 bn

4. Gross Value Added
% change in GVA from previous year

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

6. GVA per Head
RES Target
GVA per Head - Projections

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

8. Business Stock
Businesses per 10,000 population
399
237

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

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

11. Business Survival
% of businesses surviving 1 and 3 years

12. 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

13. Productivity
Productivity – Output per Hour Worked

14. Productivity Productivity Index – Output per Hour Worked
Projected Values

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

16. 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