Start Up Loans data shows surge in loans taken out in the post pandemic era in the West Midlands
Five years since the first Covid 19 lockdown, data from Start Up Loans shows a surge in aspiring entrepreneurs taking out finance to bring their business plans to life.
Watch more of our videos on ShotsTV.com
and on Freeview 262 or Freely 565
In that time, there has been an 18% increase in the number of first loans in the West Midlands, compared to the five-year period prior, delivered by the Start Up Loans programme, which is part of the British Business Bank.
This amounts to a nearly 50% (47%) increase in the total value of first loans between the two periods. The average first loan value to entrepreneurs also increased by £2,809, or 26% in the West Midlands.
Start Up Loans data on loan volume applications shows 2020 was a potentially ‘transformational’ year for UK startups. In the financial year that ended just around the time lockdown was first introduced, 8,652 Start Up Loans supported UK start up businesses. The following year this rose to 11,322, a 31% increase, and numbers have remained higher than pre-pandemic levels ever since.
The five-year period since the first lockdown has also seen a significant increase in Start Up Loans finance provided to business owners from a Black, Asian and Other Ethnic Minority background. Across the UK, the proportion of loans to recipients from an Ethnic Minority background increased 5.39% to 19.8%.
The pandemic lockdowns brought normal life to a temporary halt, with many business owners urged to rethink their approach to normal working life and consider alternative ways of growing their business.
Allyson Martin launched Bloomery in 2019, and in the same year took out a £25,000 Start Up Loan. She was supported by the Start Up Loans programme’s Business Support Partner, First Enterprise – Enterprise Loans.
The business specialises in locally grown British garden flowers and offers arrangements for events, weddings, special occasions, as well as gift bouquets. The business also runs a selection of fun, relaxing workshops at their floral studio in Broadway, Worcestershire, including seasonal wreath-making, dried flower bouquets and terrariums.
Allyson Martin, founder of Bloomery, said: "The finance that we secured from the Start Up Loans programme was a huge support in helping to launch Bloomery and offer peace of mind through the early years of the global pandemic.
"Social distancing, the various lockdowns and other restrictive measures all brought unique challenges to my business that I wasn't expecting to have to deal with in my first year of opening, although these were a small setback in comparison to what some people were going through.
"The pandemic also gave us the chance to share why we decided to become entrepreneurs. We shifted towards a more online business, using social media to talk about what we were doing and show our products, along with keeping the website current, the funding really helped us build a digital presence that continues to benefit us today."
Richard Bearman, Co-Chief Banking Officer, British Business Bank, British Business Bank: “When I think about the Start Up Loans programme, the pandemic was a real pivotal moment. So often I meet business owners and their stories start with how lockdown was the chance to stop and really think about what they wanted to do and achieve.
“We saw a huge increase in the number of loans during 2020 and into the early part of 2021. Although some of that demand for finance has understandably cooled off, we still see a lot more people seeking Start Up Loans finance for a business. In that respect, the shock of lockdowns could well have contributed to a change in how potential business owners thought about the opportunities of entrepreneurship.”
