More help needed to stop quarter of new businesses in Northumberland shutting within two years, says charity

Chief executive of the Money Advice Trust, Joanna Elson.

Chief executive of the Money Advice Trust, Joanna Elson.

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New figures reveal that 1,140 new businesses were set up in Northumberland in 2014, but a charity is warning that almost a quarter will not last long enough to see their second birthdays.

The Money Advice Trust is calling for more support to be provided to ensure that small business owners have the knowledge they need to get their firms off the ground.

Trust Chief Executive Joanna Elson said: “Small businesses are powering the current economic recovery, and we all need them to have every possible chance of succeeding.

“Unfortunately, there is a real support gap in the UK for people setting up a business.”

“Many of them have a terrific business idea but don’t necessarily have the skills, information and coaching they need to make a go of it.

“The sad truth is that 23 per cent of new businesses in Northumberland do not make it to their second birthdays.

“Not every business can succeed, but some are going under due to missteps that could be avoided with the right support early on.

“We need to do more as a country to make sure new businesses get the support and information they need in those crucial first few weeks and months.”

Figures published by the Office of National Statistics show that 1,140 new businesses were set up in Northumberland in 2014, a decrease of six per cent on the previous year. Over the same period, 880 businesses in the county called it quits.

That leaves the total number of active enterprises in Northumberland at 9,955.

Currently, 23 per cent of new businesses set up in the county do not survive to see their second birthdays, with six per cent winding up within a year.

The trust’s Business Debtline initiative helps around 80 small business owners in Northumberland every year by telephone, with others accessing advice online at www.businessdebtline.org