A new report reveals that over the last decade, the British Business Bank has backed 19,000 businesses in the South West, supporting 193,000 jobs, expected to create 16,000 new ones and generate £7 billion of additional business turnover.
The result is expected to be more than £3 billion of additional economic activity (Gross Value Added or GVA) generated in the region, the bank said.
The figures in the report, The Power of 10: 10 Year Impact Report, are published today by the British Business Bank, which is the UK Government’s economic development bank. Its mission is to drive sustainable growth and prosperity across the UK, and to enable the transition to a net zero economy, by improving access to finance for smaller businesses.
In the South West the Bank has recently marked a number of significant milestones, including the 100th deal completed by its £200m South West Investment Fund, which offers finance to businesses across the region from £25,000 loans to £5 million equity, and hitting the £100 million lending milestone for its Start Up Loans programme, which has helped more than 10,000 start-ups across the region. It has also supported the launch of the Cornwall Angel Network, bringing more potential funding options to South West entrepreneurs.
Nationally, the report says that the British Business Bank delivered more than £32 billion in combined public and private sector funding, supporting 209,000 smaller businesses which are expected to create 250,000 additional jobs and sustain almost 2.3 million existing positions.
Smaller businesses supported by the Bank are projected to generate £97 billion in additional turnover, and through their growth estimated to boost UK economic output by around £43 billion over the lifetime of their finance, contributing significantly to long-term economic value and innovation.
Louis Taylor, CEO, British Business Bank, said: “The Power of 10: 10 Year Impact Report highlights the transformative role the British Business bank has played in driving economic growth and shaping the financial landscape for smaller businesses across the UK.”
“The catalytic impact of the British Business Bank and impressive track record crowding in private funding will become even more crucial as we establish the British Growth Partnership, subject to regulatory approval, unlocking the huge potential of UK pension funds and other institutional investors in venture capital funds and the UK’s innovative businesses.”
Business Secretary Jonathan Reynolds said:“Over the past decade, the British Business Bank has empowered smaller businesses to thrive, creating opportunities and driving growth across the UK.
“They’ve supported more than two million jobs, created £97 billion in additional turnover, and delivered £32 billion in funding – its impact is clear.”
“The work of the British Business Bank is essential in our mission to grow the economy and improving living standards by supporting small businesses to flourish.”
As the UK’s largest domestic investor in UK venture and venture growth capital, the Bank supported 11 per cent of all UK smaller business equity deals and with these deals accounting for 15 per cent of total smaller business equity investment over the past decade. Equity finance activity has grown significantly, with £8 billion deployed in the last three years alone.
This investment has catalysed growth in high-potential sectors such as life sciences, clean tech, and advanced software, driving innovation across the UK economy. Among these high-growth businesses backed by the Bank, 150,000 new jobs and £29 billion in GVA are expected to result from rapid expansion.
Additionally, the launch of British Patient Capital in 2018 and subsequent programmes, including the Life Sciences Investment Programme and Future Fund: Breakthrough have accelerated equity flows to transformative sectors.
Over the past decade, the Bank says it has leveraged more than £4 of private sector investment and lending guaranteed for every £1 of public funding deployed, demonstrating its ability to act as a catalyst for private funding.
It has a network of more than 200 delivery partners, including banks, fintech providers and venture capital funds.
At the International Investment Summit, held in London laste last year, it was confirmed that the British Business Bank will establish the British Growth Partnership, subject to regulatory approval, encouraging more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies. The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline.
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