Use of external finance overall has fallen but is recovering
36%
of smaller businesses were using external finance in 2022, down 7% points from 43% in 2021
Finance is growing again
in early 2023, returning close to 2021 levels (43%)
6% point
decline in grants and 5% point decline in bank loans
53%
of smaller businesses were successful in applying for external finance in H1 2023, up from 44% in 2022
Equity finance decline beginning to ease
2023 decline in equity investment has slowed
suggesting a return to 2018 levels after a period of exceptional activity
60%
of UK equity deals are made in the Nations and regions outside of London
Innovation-led clusters emerging throughout the UK
33
innovation-led clusters have been identified, spanning 196 local authorities across the UK
University spin-outs are playing a crucial role
in supporting innovation-led clusters across the UK
University spin-outs are key players in tech sectors
making up one quarter or more of the UK's equity deals (2011 - Q2 2023) across life sciences, medical technology, hardware, materials technology and nanotechnology
23%
of tech & intellectual property deals across the 33 clusters involved university spinouts since 2011
Smaller businesses in coastal towns & cities face challenges in access to finance
The productivity gap
of the UK’s equity deals (between 2011 and Q2 2023) where made by businesses in coastal towns, despite making up 12% of the UK resident population
4%
of the UK’s equity deals (between 2011 and Q2 2023) where made by businesses in coastal towns, despite making up 12% of the UK resident population
Lower appetite for using external finance to grow
in coastal towns (26%) compared to the UK average (31%)
Net zero equity deals
in coastal towns are double the share seen in the UK as a whole, representing 14% of all deals compared to 7% of net zero equity deals across the UK
British Business Bank remains committed to helping to reduce regional imbalances
1,900 small businesses
are supported by the British Business Bank’s existing regional funds up to March 2023
6
new Nations and Regions Investment Funds are being launched, committing a further £1.6bn of investment