British Business Bank marks decade of impact on Scotland’s economy

THE British Business Bank is marking a decade of its “transformative” impact on Scotland’s economy.

In the last ten years, the Bank has provided financial support to 15,000 smaller Scots businesses, supporting 148,000 existing jobs and expected to create 11,000 additional roles since its establishment in 2014.

Published today, The Power of 10: 10 Year Impact Report, reveals that Scotland’s smaller businesses supported by the Bank to date are projected to earn around £5bn in additional turnover, the equivalent to £2bn of gross value added (GVA).

Around 7% of small firms supported by the Bank’s programmes are based in Scotland – broadly in line with the nation’s share of the UK’s business population.

Underlining its contribution to long-term economic value, the Bank launched its £150m Investment Fund for Scotland in 2023 to increase the availability and supply of finance to all parts of the country.

The fund offers loans ranging from £25,000 to £2m and equity investments up to £5m and has so far committed over £10m to support businesses across Scotland.

At a UK level, the Bank has delivered more than £32bn in combined public and private sector funding over the last decade to support 209,000 smaller businesses, which are expected to boost economic output by around £43bn over the lifetime of their finance.

Up to 37% of the businesses supported have used finance as part of a transition to net zero, using funds to reduce their environmental impact or develop green business models.

The British Business Bank is the UK’s largest domestic investor in UK venture and venture growth capital and has supported 11% of all UK smaller business equity deals and with those deals accounting for 15% of total smaller business equity investment over the past decade.

Equity finance activity has grown significantly in Scotland, with £402m deployed throughout 169 deals in 2023, including high-growth businesses in sectors such as life sciences and technology. 

In addition, the Bank has leveraged more than £4 of private sector investment and lending guaranteed for every £1 of public funding deployed since 2014, demonstrating its ability to act as a catalyst for private funding.

Its network of delivery partners in Scotland, which includes banks, enterprise agencies, financial services and venture capital funds has been instrumental in addressing structural market gaps and enabling 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 Scotland over the past decade.

“From improving access to finance for entrepreneurs and creating jobs to backing innovation and championing sustainable growth, we are proud of the impact we have achieved since 2014.

“Over 7,500 founders in Scotland have received support through the Start Up Loans programme, for example, providing a boost for smaller businesses in every area.

“Looking ahead, as well as removing geographical barriers, an ongoing focus is ensuring female founders and other traditionally under-represented groups can access the funding they require.

“In 2023 we launched the £150m Investment Fund for Scotland and, over the next decade, we will see this unlock further potential and additional investment from the private sector, as well as creating more jobs.

“The success of Scotland’s economy relies on small businesses, with the majority of private sector firms employing fewer than 50 people, so it is crucial to ensure that the financial landscape continues to help ambitious founders to thrive.”

Scottish secretary Ian Murray added: “Supporting jobs and business in Scotland is central to our Plan for Change and a massive catalyst for the growth that will put more money in people’s pockets and raise living standards right across the UK.

“We want to build on the commercial and industrial success stories that have been achieved with the support of the British Business Bank, not least through our Brand Scotland campaign championing Scottish businesses around the world.

“I look forward to the many more inspirational achievements to come.”