Why Greater Manchester is breaking the rules to set a new path for Northern growth

Over the past two decades, Greater Manchester has delivered strong economic performance. According to MIDAS, in the decade to 2020, the local economy grew by 39% to £78.7bn, alongside driving phenomenal job growth at 84% between 2002 and 2015, twice the rate of jobs growth across the North as a whole.

Looking beyond the city centre

Discussion around Greater Manchester often gravitates around the city centre, and it’s not hard to see why, with extensive infrastructure, an established and enduring business community and pull of the ever-growing Oxford Road Corridor. However, it is only part of the picture.

Greater Manchester is made up of ten distinct boroughs, each home to innovative businesses and exceptional talent. In fact, some of the most exciting growth stories are happening outside the city centre. If we are to continue growing the city region, we must ensure that the infrastructure, skills provision and access to finance that have supported the city centre’s rise are available to entrepreneurs and businesses across the whole region.

Building a strong business ecosystem

Long-term growth depends on a thriving business ecosystem. Start-ups, scale-ups and established SMEs all need an environment where they can succeed. This is what we’ve always been committed to at the British Business Bank. Since 2017, with the launch of the first Northern Powerhouse Investment Fund (NPIF), we’ve been targeting funding at these ambitious entrepreneurs across our region. We’ve seen how successful these businesses can be with the right funding, including Membr, KBF Enterprises and Urban Village Bars’ successful venture at The Wayfarer all demonstrating just how far businesses can go when given the opportunity.

The launch of the Northern Powerhouse Investment Fund II (NPIF II) is now helping to build on this strong reputation. As a fund dedicated to the entirety of the North of England, and with £660m to deploy, we’re not only providing the crucial funding needed for entrepreneurs across Greater Manchester, but also crowding in millions more in private sector co-investment and follow on funding that otherwise may have never been provided.

Now 18 months since its launch, we’ve already seen the impact NPIF II has had on businesses across Greater Manchester. Manchester-based CareLoop, a digital therapeutic platform, closed a £1.8m funding round led by NPIF II - Praetura Equity Finance, supporting its mission to tackle severe mental illness. Popular cereal and dessert spot, Black Milk Cereal, secured funding from NPIF II - GC Business Finance & River Capital Smaller Loans, helping to propel the brand into supermarkets nationwide. Over in Wigan, Panacea Children’s Services, a leading provider of specialised therapeutic services for Children, secured funding from NPIF II - FW Capital Debt Finance.

Each of these businesses is not just creating growth for themselves - they are creating high-value jobs, attracting additional investment and strengthening Greater Manchester regional economy.

What’s next for Greater Manchester?

It’s clear that Greater Manchester has all of the ingredients to rival any other city in the UK to become a hub of innovation and productivity. However, to fully realise this potential, we must ensure that the benefits are shared across every borough and community.

It’s why the onus is on us as funders and enablers to support entrepreneurs to start-up, scale-up and grow their businesses. With targeted investment that looks beyond key economic hubs in the city centre, along with strong local partnerships and a commitment to inclusive growth, Greater Manchester is truly setting the standard for growth across the North, and indeed the rest of the UK.