Over £1 Billion in Support Extended to Over 100,000 Small Businesses by the Government

13 Sep, 2023

Over £1 Billion in Support Extended to Over 100,000 Small Businesses by the Government

The UK Government's Start Up Loan scheme has now disbursed over £1 billion in funding to support the growth of small businesses. This initiative, backed by the government, provides access to financing and expert guidance to empower new small and medium-sized enterprises (SMEs) to expand and thrive.

The loans have benefited businesses in all regions across the UK, aiding entrepreneurs from various backgrounds. Notably, 40% of the loans have been directed towards female-led firms, and one-fifth of the support has gone to individuals from ethnic minority backgrounds.

Established in 2012 and administered through the state-owned British Business Bank, the Start Up Loan scheme was designed to assist UK-based startups and early-stage businesses that lacked adequate personal funds or familial support. This program offers a combination of financial resources and mentorship to enable more small businesses to develop and reach their full potential, thereby fostering economic growth and benefiting local communities.

Small Business Minister Kevin Hollinrake emphasized the government's commitment to boosting the UK economy and creating an environment conducive to entrepreneurship. He expressed a desire to see even more innovators achieve success.

The scheme has been particularly successful in promoting diversity in entrepreneurship, leveling the playing field for individuals aspiring to establish and run their own small businesses in the UK. Last year, the program expanded to provide financing to eligible businesses operating for up to five years, further supporting their growth.

One of the beneficiaries, Liang Zhang, co-founder of Liverpool-based jewelers Robin Valley, highlighted how the Start Up Loan helped their business overcome a challenging period and become profitable again.

Out of the £1 billion provided, £371 million (40%) has been extended to female business owners, £201 million (20%) to individuals from Black, Asian, and Other Ethnic Minority backgrounds, and £106 million (11%) to young entrepreneurs between the ages of 18 and 24.

Importantly, Start Up Loans have reached businesses in every UK parliamentary constituency, with a majority of the loans benefiting businesses outside of London and the South East. The North West and Yorkshire and Humber have received significant portions of the loans, amounting to £121.6 million and £90 million, respectively. This distribution ensures that businesses throughout the UK have the opportunity to scale up and prosper.