Richard Bearman

The programme, which has provided over £1.1 billion in funding to more than 118,000 businesses since 2012, offers vital support to entrepreneurs, particularly those who may struggle to access traditional finance.

Key findings of the evaluation include:

• Higher survival rates: Businesses supported by Start Up Loans demonstrate greater longevity compared to other businesses.
• Job creation: On average, each loan recipient creates one additional job in addition to their own role.
• Economic growth: For every £1 invested in the programme, the UK economy benefits from £5.50 to £5.60 of added value (GVA).
• Support for under-represented founders: The programme has a strong track record of supporting female entrepreneurs (41% of recipients) and those from ethnic minority backgrounds (18% of recipients). This surpasses the representation of these groups in the wider small business landscape.
• Geographic reach: Start Up Loans effectively supports businesses outside of London and the South East.
• Addressing a funding gap: Two-thirds of loan recipients reported they would have been unable to secure funding from mainstream sources.

Richard Bearman, co-chief banking officer, British Business Bank, said: “This evaluation is a very positive independent validation of the importance of Start Up Loans to financing and supporting UK start ups.

“The evaluation clearly shows the Start Up Loans programme helps support start up and early-stage businesses to survive longer, grow more and create jobs across the UK, mostly outside London and the South East.

“The programme also plays an important role in providing finance and support such as mentoring to those without family money to back them, or those from typically underrepresented groups.”

Professor Mark Hart, Deputy Director, Enterprise Research Centre, Warwick Business School said: “The Start-Up Loans programme is an important and long-standing feature of the business support landscape in the UK and this latest evaluation demonstrates that it continues to create significant value for those accessing the loans in terms of helping gain traction in their chosen markets.

“The late David (Lord) Young was the initial driving force behind this initiative in 2012 and these results show just how important his vision was in creating cohorts of more sustainable start-ups which are of crucial importance to the growth of the UK economy.”