Member Article

‘Start-up loans have overtaken SMEs’ announces BEF

According to national statistics over 600,000 start-up businesses were launched in the UK in the last twelve months[1], demonstrating an acceleration of entrepreneurship over SME growth.

Northern business lender, the Business Enterprise Fund (BEF) has announced that for the first time in its history there has been a shift in lending with 54% of loans in the last 12 months being provided to start-up companies, overtaking SMEs.

BEF, a not-for-profit organisation, has loaned £1.8m to start-up businesses throughout Yorkshire and the north east.

Stephen Waud, Chief Executive at BEF which has offices in Leeds, Bradford, York and Darlington, said: “Business trends have certainly changed. In the last 12 months we’ve provided Start Up Loans to almost 200 new businesses and financially supported 160 established SMEs. At BEF we understand that aiding these young businesses in the early stages of development and financial uncertainty can really help build the bedrock of our changing economy.

“As an official delivery partner for the government’s Start Up Loans scheme, we’re especially proud of the financial support we’re providing to unlock business potential with entrepreneurs in the region.”

BEF, which is seeing an increasing growth and demand across the food and drink industry, shared its funding advice at the inaugural Independent Food and Drink Academy Start up Business and Growing Business workshops in April, a new partnership between Leeds City Council and Leeds Beckett University.

Guy Lincoln, of Leeds Beckett University and the Independent Food and Drink Academy, said: “The Independent food and drink scene in Leeds has been dynamic and growing rapidly over the last two years and we’re keen to provide these young businesses with the support required. Working with an organisation such as BEF means new and potential independent businesses are aware of the available opportunities from a well-established business lender.”

Stephen Waud adds: “We offer start-up businesses loans of up to £25,000 and are currently seeing an increasing growth and demand across specific industries. The business potential is out there, it just needs guidance and the type of financial support which mainstream lenders may be unable to provide. Partnerships such as the Independent Food and Drink Academy are an excellent support system for young businesses and we look forward to working with them again in the future.”

Since its launch BEF has supported 3,000 businesses and created or safeguarded over 2,000 jobs throughout Yorkshire and the north east. In the last 12 months, the organisation has loaned a total of £6.4m.

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