New research from Durham University Business School reveals the North East England led the UK on business scaleup growth in 2020-2023, challenging long-held assumptions about regional disadvantage.
Research from our Smart & Scale programme
The study, conducted through the Business School's Smart & Scale programme, is led by Dr John Moffat and Dr Stephanie Scott.
The research examined high-growth firms, the barriers they face, and conditions for sustained performance.
Using internationally recognised definitions of scaleup growth, the findings show a more encouraging picture of the North East England economy.
Between 2020 and 2023, North East England recorded the UK's highest scaleup rate under the Organisation for Economic Co-operation and Development (OECD) definition.
1.8 per cent of firms met the definition of average annual growth in employment or turnover of at least 20 per cent over three years and employment of 10 or more. This compares with a UK figure of 1.55 per cent.
Women-led firms exceed national benchmarks
Notably, women-led businesses in North East England outperformed national scaleup rates at the highest growth thresholds.
This challenges assumptions about regional disadvantage and highlights the strength of the region's pipeline of ambitious, high-performing firms.
The importance of aligned enterprise ecosystems
The study shows aligned enterprise ecosystems are critical for business growth.
Collaboration between universities, support organisations, and policymakers improves outcomes for scaling firms.
It is particularly valuable during economic transition and leadership change.
These findings align with independent evaluations of regional scaleup initiatives, including Scaleup North East.
This programme delivered by RTC North, improved turnover and productivity for participating businesses.
Alongside the Entrepreneurs' Forum's Scaleup Leaders' Academy, these programmes are recognised nationally by the Scaleup Institute.
The research shows such initiatives work best when evidence informed and locally embedded.
They are most effective when connected to a wider ecosystem of expertise and delivery.
Executive Dean, Professor Kieran Fernandes said:
"This research highlights the importance of strong enterprise ecosystems, where collaboration between universities, support organisations, and policymakers is critical to translating ambition and innovation into sustained economic performance."
Informing future policy and practice
The findings will guide the Business School, partners and policymakers to strengthen North East England's scaleup capacity. They will help build on successful approaches and support sustainable high-growth enterprise.
