Sage predicts next generation of SME’s will be in the north

With the economic recession still firmly in place throughout most of the country, some people are wondering where the next generation of SME owners are going to come from, but it may not be from an expected source according to IT specialist, Sage.

Research from Sage suggests that many of the hotspots within the UK will not be located in the South-east where the economy has remained the strongest, but instead in more unexpected areas such as Yorkshire and the North East where the economy is struggling a bit more to recover.

In Britain as a whole, one out of every four people would like to build up their own business according to Sage, but out of these only 7% actually expect to be able to do so. However, in Yorkshire and in the Northeast the amount of people that expects to be able to start their own businesses increases to 10 and 11% respectively.

Only a very small amount of people in these regions believe that a lack of opportunity is the reason for not starting their businesses instead they are more motivated by the fact that they want to earn their own money and control their working hours.

This is unique research that may be interesting to policymakers given the fact that they tend to focus on city locations such as London for economic growth opportunities. While the Government has made a few efforts to help nationwide small businesses, it still has not yet managed to create a program that will help people from all areas out.

For example, the Regional Growth Fund was just savaged after an inquiry was launched questioning how effective it actually was. According to research from Sage, areas with a lack of entrepreneurialism have high levels of unemployment, boosting the need for the Government to get more involved in SMEs.