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:
Develop a better understanding of the performance, effectiveness and impact of the North East Growth Hub and its programmes, and
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.
Strong regional business support offer
that addresses specific local needs
Person-centric approach
to delivery is important to the Growth Hub's success
Helping to foster more positive views
of business support and advice
Positive business benefits
having engaged with the Growth Hub
Headline findings
There is evidence of positive results across the three evaluations, related to delivery approaches, uptake, and outcomes. The Growth Hub’s overarching activities, the HPSU programme, and the MSANE programme each contribute to a strong regional business support offer that addresses specific local needs. The design of these programmes and activities demonstrate clear alignment and relevance, key to which has been their development based on a clear evidence base, and flexibility to address the challenges of the COVID-19 pandemic.
The person-centric approach to delivery is of significant importance to the success of the Growth Hub’s activities and programmes. This approach encompasses both the ways in which businesses are handled, and the consideration given to communication and packaging of the offer.
The broad uptake of Growth Hub services indicates that the activities and programmes are reaching appropriate businesses. Overall, the Growth Hub engaged with 5% of all businesses in the North East LEP area with one to one support, between April 2018 to March 2022, with the breakdown of businesses accessing support being broadly representative of the overall business population. The HPSU programme and MSANE programme both achieved good engagement against their targets despite the challenges of COVID-19. Both programmes aimed to reach specific segments of the business population, and programme data suggests this was achieved.
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.
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.
Conclusions
The Growth Hub operates under a commitment to continual improvement. This is evident in the focus given to the business customer journey, from improving how information is found and accessed to the ways in which businesses are handled throughout access of the support offer. Information and its packaging is reviewed to ensure relevance to businesses seeking support, and the triage team are working on bolstering ongoing engagement. The delivery model is also being revised which, though this is in light of recent changes to funding, also demonstrates continual attention to service revision. Both the HPSU and Made Smarter programmes also offer potential for scalability.
Taken together, all three programmes have achieved their intended outcomes to the extent that may be expected at this point in time. Each can be characterised as being well-designed and implemented in a way that has been valuable to participating businesses even through the challenges posed by the COVID-19 pandemic and EU Exit. Each of the Growth Hub, HPSU programme, and MSANE programme offer lessons for future delivery of support.
These good practice principles are summarised below:
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.
Additional evaluation findings
Programme Logic Model
To read about the programme logic model and theory of change for the evaluation.
