MY local sandwich shop, BAIT, on Leazes Park Road in Newcastle, has just celebrated its first birthday, writes Gary Welford, an investment manager at Brewin Dolphin.

It’s a family run business with a strong focus on quality fresh produce and friendly service. Its owner, Kate, is enthusiastic, entrepreneurial and forward looking. The company has already started external catering and, with the team she has in place, I have no doubt the future is bright. But how do small and medium businesses take the next step? How does today’s BAIT become tomorrow’s PRET?

A significant issue local businesses face when expanding is sourcing funding. I was recently at a Tees Valley Business Club (TVBC) event which was essentially an evening highlighting real life examples, warts n all, of how local businesses have taken “the next step”.

The Joint European Resources for Micro to medium Enterprises programme (thankfully abbreviated to JEREMIE) is an initiative of the European Commission, developed together with the European Investment Fund, which may be one consideration for North East entrepreneurs. Contributions from the European Regional Development Fund are allocated investment funds to invest in enterprises. These investments can take the form of equity, loans and/or guarantees. In the North East, the managers of these investment funds are very much open for business and looking for opportunities.

The TVBC, which was celebrating its annual Summer Supper at Rockliffe Hall, informed members that a total of £20m had already been invested in the Tees Valley, from the seven different funds that comprise the JEREMIE programme, in addition to attracting a further £50m through private investment.

At the event, we were invited to listen to a panel of experts made up of business owners who had used investment from the JEREMIE fund, private investors and fund managers. Panel members included Dave Wrigley, Managing Director of Sweetheart Patisserie, Si Brown, founder of Skignz, Will Turner from Ambiance, John Evans, Managing Director of Beanies is the Flavour Co, Graham Forrest from Eagle Welding and Engineering and Christine Stobbs from Wilton Engineering.

Several fund managers were represented at the event and I feel it worthwhile to name them all. In no particular order, we learned how FW Capital, Northstar Ventures, ipgroup, NEL Fund Managers and River Capital Partners have each assisted local businesses in providing finance and advice.

I spoke to several of the fund managers post the event and whilst a couple highlighted they occasionally run into the token mad scientist, they are very much open for business and willing to sit down and discuss business plans. For any business that is looking to raise finance it surely can’t do any harm to put yourself in front of these fund managers and listen to their opinions. This dragons den experience, in my view, can only make your business stronger, even if funding is refused.

Jane Reynolds, Chair of Tees Valley Business Club and also Tees Valley Business Manager for North East Finance commented “The panel helped to illustrate the wide range of businesses in which the fund invests, ranging from one who manufactures high-quality desserts to another building subsea equipment. It proves that any business could potentially benefit from third-party investment”.

I can only echo these comments and invite all entrepreneurs to explore their financing options when considering taking “the next step”.