Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Small Business Finance Markets Report 2019/20: Key Findings

Key findings from the British Business Bank's 2019/20 Small Business Finance Markets Report.
Download the full report: https://www.british-business-bank.co.uk/research/sbfm/

  • Login to see the comments

  • Be the first to like this

Small Business Finance Markets Report 2019/20: Key Findings

  1. 1. 2019/20 #SBFM2020 Small Business Finance Markets Report Launch Report Key Findings Alice Hu Wagner, Managing Director, Strategy, Economics & Business Development, British Business Bank
  2. 2. #SBFM2020 Bank lending flows to smaller businesses remained flat Gross bank lending to SMEs Source: Bank of England, BVA BDRC SME Finance Monitor 73% of SMEs would prefer to grow more slowly than borrow to grow more quickly (up from 70% in 2016) 1.3% of SMEs applied for a new loan over 2018 to 2019 53.4 57.9 59.2 57.3 57.7 56.7 2014 2015 2016 2017 2018 2019
  3. 3. #SBFM2020 Significant growth in alternative forms of finance Growth of equity, asset finance and marketplace lending since 2014 2014 = 100 Source: Beauhurst, FLA and Brismo, British Business Bank calculations 23% growth in equity investment per year 7% growth in asset finance per year 48% growth in marketplace lending per year100 150 200 250 300 350 400 450 500 2014 2015 2016 2017 2018 Private external equity investments Asset finance flows Marketplace lending
  4. 4. #SBFM2020 Low confidence weighed on investment and increased demand for working capital Source: FSB, Voice of Small Business survey 0% business investment growth estimated in 2019 46% of SMEs used finance in the first half of 2019, driven by demand for working capital and cashflow support Small business confidence reached its lowest point for 8 years
  5. 5. #SBFM2020 Source: Beauhurst, Equity investment into UK spinouts 75% of investment into spinouts is concentrated in London, Oxford and Cambridge �1.2bn equity investment from 334 deals in 2019 Equity helps develop the innovation ecosystem Investment into spinouts by UK region (2019)
  6. 6. #SBFM2020 Incubators and accelerators help start-ups and scale-ups Business incubator and accelerator locations 70% of incubators and accelerators combined are based outside London but London hosts 50% of accelerators, the majority of which offer funding Source: BEIS, Incubator and Accelerator Directory
  7. 7. #SBFM2020 London remains the largest market for VC, with other hubs developing across the UK VC investor locations Source: British Business Bank analysis of PitchBook, 2019 27% of London businesses say there is a lack of local investors 43% of businesses outside London say there is a lack of suitable investors in their area
  8. 8. #SBFM2020 Bank regional funds have increased high-skilled jobs Share of jobs in the top quartile of UK income, above �36k 37% 33% 23% 23% Midlands Engine Investment Fund Northern Powerhouse Investment Fund Bank-funded investment Regional average Source: Northern Powerhouse and Midlands Engine Investment Funds early assessments, British Business Bank analysis of HMRC personal incomes data and ONS ASHE data 559 smaller businesses have received investment from NPIF worth �148m 230 smaller businesses have received investment from MEIF worth �86m
  9. 9. 2019/20 #SBFM2020 Small Business Finance Markets Report Launch Thank you

×