279 BBB Regional Infographic.indd 2 23/02/2018 15:29 SMALL BUSINESS FINANCE MARKETS REPORT 2017/2018 SMALLER BUSINESSES’ USE OF FINANCE DIVERSIFYING IN 2017/18 £ value of smaller business asset fnance deals value of peer-to-peer business lending number of smaller business equity fnance deals Up 51% value of smaller business equity fnance deals Up 79% Up 12% Up 12% A THRIVING START-UP CULTURE 5.7m highest ever UK business population new record for start-ups in a year 414,000 35% of employer enterprises are start-ups THE BANK LENDING PICTURE REGIONAL IMBALANCES IN EQUITY INVESTMENT net bank lending - still positive, although down on 2016 of smaller businesses confdent they’d get a loan if they applied of smaller businesses sought new loans in last 2.5 years of smaller business loan applications approved of smaller businesses would rather forgo growth than borrow of the UK’s business population is in London but 19% of UK equity investment deals are in London 52% £0.7bn 1.7% 72% 70% 43% £ SCALE-UP BUSINESSES NEED MORE LONG-TERM PATIENT CAPITAL £118m average UK VC fund size – one third smaller than in the US (£180m) average number of rounds of UK VC funding for businesses that exit (US average 2.7 rounds) 1.9 £13bn long-term patient capital to be unlocked by British Business Bank UP TO A full list of sources is provided in the Small Business Finance Markets Report 2017/18, available from the British Business Bank website 279 BBB Regional Infographic.indd 1 23/02/2018 15:29 BRITISH BUSINESS BANK REGIONAL FUNDS NORTHERN POWERHOUSE INVESTMENT FUND REGION MIDLAND ENGINE INVESTMENT A full list of sources is provided in the Small Business Finance Markets Report 2017/18, SMALL BUSINESS FINANCE MARKETS REPORT 2018 – THE REGIONAL PICTURE SHARE OF BANK BUSINESS LOANS (NUMBER) PER REGION RELATIVE TO BUSINESS POPULATION SHARE OF EQUITY DEALS (NUMBER), RELATIVE TO NUMBER OF HIGH-GROWTH FIRMS THE UK’S EQUITY INVESTMENT HOTSPOTS LOCATIONS INVESTED IN BY BUSINESS ANGELS 12% East of England 15% Scotland North East 5% Yorkshire 58% London 5% East Midlands South East 33% 12% South West 5% Wales 8% North West 8% West Midlands 6% Northern Ireland 5% 69% invested inside their home region 59% invested outside their home region NB: percentages total over 100% as some angels report investing in more than one region FUTURE DEVELOPMENTS FOR THE REGIONS In response to the government’s Industrial Strategy, we are developing an investment programme to support the growth of clusters of business angels outside London, and putting in place a network of British Business Bank regional managers. % of loan % of GB facilities business approved population 2017 London 13.3 19.1 South East 11.8 16.7 South West 12.7 9.6 East Midlands 6.4 6.7 West Midlands 7.6 8.1 East of England 8.9 10.3 Yorkshire and Humberside 6.2 7.5 North East 4.2 2.6 North West 12.1 9.5 Wales 6.3 3.8 Scotland 10.5 6.2 much above average above average average below average much below average Software Business and Professional Services Life Science Industrials Glasgow Manchester Liverpool Birmingham Bristol Oxford Cardif Brighton and Hove Leeds Cambridge Edinburgh Newcastle-upon-Tyne Shefeld London 1 London 2 FUND REGION CORNWALL AND ISLES OF SCILLY INVESTMENT FUND (TO BE LAUNCHED) % of total % of total number of UK number of Equity Deals UK HGB (Q4 2016- (2015) Q3 2017) London South East Scotland East of England North West South West Wales Yorkshire and Humberside West Midlands North East Northern Ireland 1.6 2.2 East Midlands 1.4 7.0 52.1 19.8 10.7 15.0 6.5 6.8 6.0 8.7 5.6 10.5 5.4 8.5 3.0 3.6 2.9 7.6 2.6 7.4 2.1 3.0 much above average slightly below average below average much below average available from the British Business Bank website