Introduction 

In 2022, the North East LEP commissioned an evaluation of the North East Growth Hub, undertaken by Technopolis. This independent evaluation focusses on the activities of the Growth Hub, plus a deep-dive on two specific programmes run through the Growth Hub: High Potential Start-Up (HPSU) and Made Smarter North East (MSANE). The evaluation has two objectives: 

1. Develop a better understanding of the performance, effectiveness and impact of the North East Growth Hub and its programmes, and 
2. Deliver evidence to inform ongoing and future delivery, including the development of policy and programmes

A mixed methods approach to this evaluation was undertaken. This comprised desk-based research, analysis of programme monitoring data, a review of comparator programmes and provision, and two parallel series of interviews. Consultation covered 20 stakeholders, comprising delivery partners, universities, the Department of Business, Energy, and Industrial Strategy (BEIS), and members of Growth Hub leadership, and 35 businesses that had accessed the Growth Hub and its support programmes. Throughout, the study team has situated the findings of the evaluation in the context of the national evaluation of the network of 38 Growth Hubs (undertaken for BEIS by Technopolis between October 2020 and December 2021), and the desk-based review of comparator programmes.

Headline findings

Testing for outcomes and impacts of the programmes found further positive results. Each of the Growth Hub’s overarching activities, the HPSU programme, and the MSANE programme demonstrate outcomes in line with their objectives. This further supports the view that the programmes  were appropriately designed and delivered. The business benefits of the Growth Hub’s activities includes help navigating difficult situations such as the COVID-19 pandemic and EU Exit, and help for businesses to better understand their own needs. Specifically: 

• The Growth Hub is helping to foster more positive views of business support and advice, too, with the local ownership and presence of the Growth Hub described as essential to developing trust among local businesses. In addition, businesses that have engaged with the Growth Hub demonstrate tangibly higher rates of business growth than similar businesses that did not receive support, with each of employment, turnover, and labour productivity being stronger among supported beneficiaries than the control group. 
• The HPSU programme has resulted in a number of positive effects on businesses and founders, including: job creation, upskilling of employees, increased turnover, and establishment of new companies.
• The MSANE programme has delivered business benefits including: increased knowledge and awareness of how digitalisation can help to keep up with market demands, plus scoping and adoption of new technologies, and tangible improvements as a result of the programme (such as increased efficiency, improved cost effectiveness, and increased competitive advantage).

Turning to the effects of the Growth Hub and its programmes on the local business support ecosystem, there are further positive indications. The Growth Hub addresses simplification of the support landscape via the development and maintenance of the provider network and, while some actors continue to work outside of this purview, consulted stakeholders were upbeat about the difference made by the Growth Hub. The HPSU programme operated in a more challenging landscape (most notably related to investor relations regionally) but still positively influenced access to additional support. Similarly, the MSANE programme contributed to increased awareness of and improved attitudes toward other business support among beneficiaries.

Conclusions

Going forward, it will be important to continue efforts to raise awareness among businesses about the existence of the Growth Hub and business support services. This should further assist in the clarification of the landscape in the long run, as the more the Growth Hub becomes a central point of reference, the easier it will be to direct businesses into the right places for support. This may also continue to bolster the case for actors at all levels to consider the Growth Hub a primary conduit. This may require expansion of teams and further resourcing, which may be difficult in light of recent budgetary cuts.

Similarly, continued tailoring of business support based on evidence and knowledge of the local landscape will bolster the sustainability of the Growth Hub. It is clear that businesses are best engaged and supported when addressed with relevant messages, examples and knowledge. This includes a consideration of content segmentation related specific needs, and is especially important if the target audience for support is predominantly defined by the stage at which they are in their journey.