Jobs and Enterprise

Version 5, May 2008

Increasing the Number of Business Start Up and Survivals and People who are Self-Employed: VAT Registrations in 2006 (Latest Information)

Why is this a priority?

A thriving local economy makes a vital contribution to the prosperity of the region, so we have made this one of our priorities. We want South Tyneside to be a place where local people are able to find and remain in employment and where businesses have the highly skilled workforce they need to grow and compete in a rapidly advancing economy. We will support new business start-ups to try to increase the rate of survival so that more people are self-employed and able to employ others.

We are committed to our 'South Tyneside Means Business' campaign, supported by the Local Enterprise Growth Initiative. The South Tyneside Business Forum is the influential voice of local business, involving hundreds of local business people. The 15 strong private sector steering group promotes local businesses and South Tyneside as a place to do business.

Achievements

  • Being awarded North East Capital of Enterprise in 2005
  • South Tyneside Enterprise Partnership led a successful funding bid for £16.2m from the Local Enterprise Growth Initiative
  • 'South Tyneside Means Business' has helped create 96 new businesses and assisted over 200 existing companies through initiatives such as Management Timeshare, Bid Box and Access to Markets
  • Our Enterprise Champions work with individuals and groups to develop their business ideas with the aim of eventually moving to self-employment or starting up a business. To date, they have engaged with 1824 individuals and are working intensively with 162 to bring their business ideas to reality
  • The 'South Tyneside Major Business Grant Fund' offers flexible incentives to attract inward investment and mobile entrepreneurs

Where do we want to be?

We are committed to growing our local economy. As we continue to play our part in the growth of the North East regional economy, we will see the benefits across all of our priorities, from reducing child poverty and closing health inequalities to improving wellbeing.

How are we going to get there?

We will provide relevant and timely business advice in accessible locations across the Borough. More intensive support will be provided to the most disadvantaged individuals to overcome barriers to starting up. To keep our services simple and easy to access, they are aligned with the Government’s 'Business Support Simplification Programme'.

South Tyneside Means Business delivers enterprise outreach work in our communities through the Enterprise Champions project. Delivered in partnership with TEDCO and Business Link North East, the Business Matters outlets form hubs of business support to those thinking about starting or growing a business.

National Indicators in our Local Area Agreement:

  • NI 171 – New business registration rate
  • VAT Registrations

How are we performing?

VAT registrations and de-registrations are the Government's preferred indicator of business start-ups and closures in an area. They tell us how many businesses have reached a high annual turnover level and registered to pay Value Added Tax. This is used as a measure of entrepreneurial culture and activity. However, many local businesses may never qualify for VAT registration, so we also measure the new business registration rate to help us monitor our progress. If you would like information on this, please use the Ask Us link at the top of the page.

(It should be noted that VAT registration figures do not include the very smallest (one-person) businesses with turnover under £67,000.)

In all, 210 businesses registered for VAT in South Tyneside during 2006. Over the period 1994 – 2006, the average number of registrations was 211 / year. In the past eleven years the highest level of registrations was in 2003, when 235 firms registered for VAT.

From 1994 – 2006, on average there were 19 registrations per 10,000 population in South Tyneside. The latest VAT registration figures show South Tyneside is below this average with only 17 VAT registrations per 10,000 population in 2006 (Source: Small Business Service).

VAT Registrations per 10000 persons

The table below compares South Tyneside's performance against Great Britain, North East and Tyne & Wear.

VAT Registrations per 10,000: Great Britain, North East & Tyne and Wear
Area 1994 2000 2006
Great Britain 37 38 37
North East 22 21 22
Tyne & Wear 21 20 22
Gateshead 22 22 22
Newcastle 26 25 25
North Tyneside 18 21 24
South Tyneside 19 14 17
Sunderland 19 17 20
Source : Small Business Service : VATStats2006Tables1a1e.xls

In South Tyneside, our self-employment rate is 5.7%, compared to a regional rate of 6.3% and a national rate of 9.3%.

Links to Further Information

Next Update:

The Small Business Service is released a year in arrears (December 2007). The next update is due in December 2008.

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