£7 Billion Boost: How the British Business Bank is Transforming the South West

A Decade of Economic Impact

The British Business Bank, the UK Government’s economic development bank, marks its 10th anniversary with the release of its The Power of 10: 10 Year Impact Report. Since its establishment in 2014, the Bank has delivered transformative support to smaller businesses across the South West, driving growth, creating jobs, and stimulating innovation.

The report reveals that businesses supported by the Bank in the South West are expected to generate an additional £7 billion in turnover, contribute £3 billion in Gross Value Added (GVA), and create 16,000 new jobs. This is alongside the 193,000 existing jobs supported since the Bank’s inception.

Supporting Businesses Across the South West

The British Business Bank has directly backed 19,000 businesses in the region, with programmes such as Start Up Loans and the South West Investment Fund playing a critical role. Highlights include:

• 100th Deal for South West Investment Fund: Offering loans from £25,000 to £5 million, the £200 million fund recently completed its 100th deal, cementing its role in regional growth.
• £100 Million Start Up Loans Milestone: Over 10,000 start-ups in the South West have benefited from the programme’s funding, opening doors for budding entrepreneurs.
• Cornwall Angel Network Launch: Aimed at providing more funding options for local entrepreneurs, the network represents the Bank’s commitment to fostering innovation in Cornwall and beyond.

National Achievements, Local Impact

Across the UK, the British Business Bank has supported 209,000 smaller businesses with a combined public and private sector funding of over £32 billion. These businesses are expected to generate £97 billion in additional turnover and boost economic output by around £43 billion over the lifetime of their finance.

On a national level, the Bank has achieved a 4.2% annual return, proving that economic growth and financial sustainability can go hand in hand.

Driving Innovation and Sustainable Growth

Innovation has been at the heart of the Bank’s activities, particularly through equity finance initiatives. Since its formation, the Bank has supported 11% of all smaller business equity deals in the UK, accounting for 15% of total investment. This has catalysed growth in high-potential sectors such as life sciences, clean tech, and advanced software.

Additionally, 37% of businesses supported by the Bank have utilised finance to adopt green practices or develop environmentally sustainable models, highlighting its role in the transition to a net-zero economy.

Inclusive Access to Finance

The British Business Bank has prioritised inclusivity, ensuring finance reaches under-represented groups. Through its Start Up Loans programme, 40% of loans have been awarded to female founders, and 20% to entrepreneurs from Black, Asian, or Other Ethnic Minority backgrounds. This focus continues with a £50 million investment into female-led funds through its existing programmes.

Looking Ahead: British Growth Partnership

The Bank’s next phase includes the establishment of the British Growth Partnership, pending regulatory approval. This initiative aims to unlock UK pension fund and institutional investment in high-growth businesses, with the initial fund seeking to raise hundreds of millions of pounds to support innovative companies.

For more information, the full The Power of 10: 10 Year Impact Report is available here.

This decade-long journey reflects the British Business Bank’s commitment to driving sustainable growth, fostering innovation, and creating opportunities across the South West and the UK.