The UK government has handed £1billion out to small firms via its start up loans scheme. The programme was created to help entrepreneurs start and scale up their businesses. It has now provided funding to over 100,000 businesses across the country.
Delivered through the state-owned British Business Bank, the start up loan scheme was developed and launched by the government in 2012. It helps new and early-stage UK startups without sufficient personal funds or support from friends and family. Consequently, they are given access to affordable finance and mentoring support.
The scheme has been particularly successful in supporting entrepreneurs from diverse backgrounds. It has created a level playing field for all who wish to run their own small business in the UK.
Last year, the scheme was expanded to provide finance to eligible businesses operating for up to five years to support their growth.
Small Business Minister Kevin Hollinrake said: “We’re delivering on the Prime Minister’s priority to grow the economy and make the UK the best place in the world to start and scale up a business.
“Across all four nations and every region of the UK, we’ve supported exciting entrepreneurs through one billion pounds of government backed loans. I want to see even more innovators reach their potential.”
London Startups aren’t the ones taking advantage of the scheme the most
Start up loans have been issued to businesses in every UK parliamentary constituency. The majority of loans have also been issued to businesses outside of London and the South East. This ensures that businesses across the UK are able to scale up and grow. Outside of these regions, the North West and Yorkshire and Humber have received the largest shares of the loans, receiving £121,619,51 and £89,997,598 respectively.
Welcoming the news, industry veteran Derek Mackenzie, CEO, Investigo said: “Getting access to funding is one of the biggest challenges facing entrepreneurs. It’s encouraging to hear that this investment is directly empowering a new generation of women leaders. It’s imperative to support owners from diverse backgrounds.
“By unlocking the potential of people from all walks of life, we can build stronger businesses that not only drive economic growth but also enrich wider society. Key to making this investment have a lasting impact is enabling fast-growing companies to get access to highly skilled people. Especially those that are equipped with the latest AI and digital capabilities to drive growth for the future.”
Josh Boer, director of technology consultancy VeUP said: “SMEs are the lifeblood of the economy. It’s encouraging to see the government providing substantial support to the next generation of scale-ups and entrepreneurs. However, so much more must be done to equip businesses with the necessary skills and technology. By harnessing the power of AI and the cloud, businesses can initiate rapid growth. Furthermore, they can expand their operations, and reach their full potential.”
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