One in two South West smaller businesses sought external finance over the last three years, report finds

A report published today by British Business Bank reveals that small and medium sized businesses in the South West received 13% of all announced equity deals during the first three quarters of the year, worth £528m. 

This represents a a 46% increase over the same period in the previous year.

The Small Business Finance Markets 2022/23 report also shows there has been a significant demand for external finance in the South West. In 2022, 47% of smaller businesses in the region sought or applied for external finance in the last three years, the second highest of any region in the UK.

Steve Conibear, UK Network Director, South and West of England at the British Business Bank, said: “Today’s report highlights the South West’s entrepreneurial spirit, with businesses in this region more likely to seek external finance than the national average. Ensuring that businesses can access the skills, support and finance is crucial to supporting economic resilience and future growth.

"The launch of our £200 million South West Investment Fund this year will increase the supply and diversity of early-stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.”

Nearly half (47%) of the South West’s smaller businesses in the UK sought external finance, the second highest of any region in the UK.

The report chimes with recent research conducted by Tech South West which found that 28% of South West tech firms had sought grant funding in 2022, with 17% seeking investment. 8% of businesses surveyed by Tech South West reported seeking loans during the same period.

Ben Cooper, Funding Lead at Tech South West, said: "From fintech to gaming, marinetech, quantum and cyber, funding is the fuel that drives the innovation engine. Tech South West is working hard with partners and key stakeholders to enhance access to funding for growing tech firms, and to stimulate angel activity in the region."

The British Business Bank report also found that South West businesses received 13% of Q1-Q3 2022 investment deals in the UK, reaching a total investment of £528m, a 46% increase over the same period in the previous year.

Year on year, the report finds, the number of deals in the South West increased by 13%, one of only four regions that experienced an increase. The South West accounted for 7% of net zero-related equity deals and 3% of the investment value.

Read the full report at https://e-britishbusinessbank.co.uk/45HG-1HMQ1-7J1612-1BE1VN-1/c.aspx