East Anglia's entrepreneurial spirit

Shhh… the secret's out. East Anglia is among the most entrepreneurial regions in the UK. To coincide with Global Entrepreneurship week, business editor Paul Hill ponders whether we shout loudly enough about our success?

The conversation with the pinstripe suit from the Square Mile ran along these lines…

"East Anglia - yes, that's the place where folks wear gingham and straw hats and drive around on tractors isn't it?" he quipped.

"Er, not quite," I replied, "You'd be surprise about how many people are quietly making serious money by doing clever things."

Pinstripe looked puzzled.

Then came a moment of revelation.

"Ah yes, now you're talking about Cambridge…"

There are two common characteristics that tend to mark out an East Anglian entrepreneur.

First, we'll look for opportunities to make money and we'll work around the limitations of our region's infrastructure - whether transport or technology.

To take one example, the online marketplace Ebay reports that it has more e-traders in Norwich than any other provincial city in the city - regardless of how quick or slow broadband connections are in the city.

But the second characteristic is that we won't shout too loudly about our success.

Maybe we're just too busy trying to make a living…

Research by academics working on the annual Global Entrepreneurship Monitor (GEM) found that about half of the East Anglian population believe they have the skills to start a business. One in three believe there's a good opportunity on their doorstep. Last year, GEM found more women starting up businesses in East Anglia than any other English region.

The question looking ahead is whether or not the recession - and perhaps the spur of redundancy - will see growing numbers of people look to go it alone.

David Martin, the Norfolk partnership director at the advisory body Business Link, said: "We run business start-up workshops across the region, and in the first six months of 2009 our bookings were up 40pc.

"That's about people showing an interest in starting a business - and there's bound to be a strong correlation between that interest and people going ahead and starting out in business."

But he added: "Redundancy is one of the most common, but also one of the poorest reasons for starting a business.

"When people are made redundant, many do think about starting their own business because they don't want to go through the grief of being made redundant again.

"But when it comes to help people start up, we're looking for passion and enthusiasm about the idea for the business - we try to help people focus on what they want to do in future rather than look back at their employment history.

"Generally, you can make your way as long as you've done your research right, you've got passion and enthusiasm and take external advice and don't try to take on the world on your own."

Of course, not all entrepreneurs are building Branson-esque global brands. But the positive economic impact of the legion of smaller businesses and start-ups runs into the billions of pounds.

Research published yesterday found that Norwich, Ipswich, Peterborough, Colchester and Chelmsford are among the UK's top 100 towns and cities for the number of business run from home - and that combined those "home businesses" generate about £28bn for the East Anglian economy.

But the research, by BT and Enterprise Nation - the advisory website run by EDP columnist and entrepreneur Emma Jones - found that the growing number of "home businesses" are "missing out on vital advice and help because their success and growth is not being fully recognised".

According to Enterprise Nation, more than 60pc of businesses started in the UK begin at home, but "the awarding of grants and support from government, regional development agencies and business support bodies should be more dependent on growth in earnings, rather than growth in employees.

"Nearly half of firms surveyed (45 per cent) plan to increase turnover by using freelancers and outsourcing, while 42 per cent intend to make better use of existing resources - and only four per cent will consider hiring full-time employees."

The report also calls for more support outside normal office hours to help a new 'five to nine generation' of home entrepreneurs, who hold down a day job and build their businesses during evenings and at weekends.

Ms Jones said: "More people are starting up at home on account of lower costs and wanting a better work/life balance.

"Basing a business at home is certainly no obstacle to growth as home business owners are making the most of technology to outsource work and collaborate with other talented minds.

"It's a most modern way to grow, yet it is not recognised in business support programmes and policy."

The truth is that entrepreneurs in popular culture - the Bransons, the Dragon's, the Sugars - skew our understanding of the reality of running a business.

The challenge is to ensure that support locally, regionally and nationally is geared - and is flexible enough - to ensure that every business fulfils its potential, whether it's a one man or woman band, or a global brand.

Earlier this year, the EDP and the East of England Development Agency published its "Future50 list" of entrepreneurs who will be among the one's to watch. Visit www.edp24.co.uk/future50

To see the East Anglian video that accompanies Global EnterpreneurshipWeek visit www.edp24.co.uk/business