12 November 2019
Entrepreneurship in the North East of England is on the rise, according to new figures published today from Start Up Loans, part of the British Business Bank.
They reveal that the government-backed programme has lent over £30.5m to small businesses in the North East since it was launched in 2012. In the last year alone, entrepreneurs in the region were granted loans totalling more than £4.8m (an increase of 18.6% since the end of October 2018).
To date, the programme has issued 3,882 loans to aspiring business owners in the North East, with the average loan amounting to £7,867.
Among them is Gary Ewing, from Bishop Auckland, County Durham, who took out a £25,000 Start Up Loan to launch Inspiral Cycles, a bicycle shop and online retailer that provides new bikes, parts and accessories plus a full workshop for the local community and beyond.
Gary had always had a passion for bikes, so when the local cycle store in Bishop Auckland closed, he and his wife Fiona spotted an opportunity and they decided to take the leap.
In addition to their own savings, Gary used the loan to purchase stock and equipment to kick start the business. The shop is now doing so well that Gary now employs four full-time staff and Inspiral Cycles is building an extension to double the size of the current space, in order to cater for the needs of their growing client base.
The award-winning Inspiral Cycles has built a five-star reputation with dedicated riders, families and anyone seeking cycling advice. Located on the edge of the Durham Dales, the area has some of the best cycling routes in the UK right on its doorstep along with a high street which required regeneration.
The Start Up Loans programme provides fixed-interest loans of up to £25,000 to aspiring business owners from across the UK, many of whom might be struggling to access other forms of finance. Since 2012, it has lent over £542.9 million through 67,862 loans.
In addition to finance, Start Up Loan applicants receive support from an experienced business advisor to help them prepare a business plan and cash flow report. Successful applicants are also offered 12-months of free mentoring to guide them through the early stages of their business journey.
Gary Ewing, founder of Inspiral Cycles, said: “Starting a business is the best thing I’ve ever done – but it hasn’t been an easy journey. I’ve had to negotiate many hurdles and challenges. Fortunately, Start Up Loans has supported me every step of the way.”
Richard Bearman, Managing Director of Start Up Loans, said: “Small businesses play a crucial role in their community, creating jobs and enabling economic growth. That the value of Start Up Loans to new businesses in the North East has increased by almost one fifth in the past 12 months is really very encouraging for the region.”
Breakdown of loans by region (as at end October 2019)
| UK Region | Loans Made | Amount Lent (£) | Average Loan Amount (£) |
|---|---|---|---|
| East Midlands | 3,796 | 28,035,639 | 7,386 |
| East of England | 4,514 | 35,475,053 | 7,859 |
| Isle of Man | 1 | 5,000 | 5,000 |
| London | 15,423 | 123,549,511 | 8,011 |
| North East | 3,882 | 30,538,973 | 7,867 |
| North West | 8,366 | 65,043,581 | 7,775 |
| Northern Ireland | 1,060 | 7,735,826 | 7,298 |
| Scotland | 4,152 | 31,262,824 | 7,530 |
| South East | 6,062 | 51,888,625 | 8,560 |
| South West | 5,602 | 43,964,855 | 7,848 |
| Wales | 3,096 | 28,219,410 | 9,115 |
| West Midlands | 5,691 | 43,687,422 | 7,677 |
| Yorkshire and The Humber | 5,752 | 48,196,017 | 8,379 |
| Region not obtained | 465 | 5,356,544 | 11,519 |
| Grand Total | 67,862 | 542,959,280 | 8,001 |
ENDS
For more information, please contact:
Alice Milne, Account Manager
Notes to editors
The Start-Up Loans Company, part of the British Business Bank, was formed in June 2012. The Start Up Loans scheme provides personal loans for business purposes of up to £25,000 at a 6% fixed interest rate per annum and offers free dedicated mentoring and support to each business.
The primary aim of the Start Up Loans scheme is to ensure that viable start-ups and early-stage businesses have access to the finance and support they need in order to thrive. A network of Delivery Partner organisations support applicants in all regions and industries throughout the UK. The Start Up Loans scheme is not designed to generate a commercial profit. Capital payments together with the interest are recycled to help meet our customers’ increasing demand for finance.
Free guides on a range of subjects related to starting a business are available on the Start Up Loans website: https://www.startuploans.co.uk/free-start-up-guides/. You can find recent media press releases here: https://www.startuploans.co.uk/media-centre/.
The funding for the Start Up Loans scheme is provided by the Department for Business, Energy and Industrial Strategy (BEIS). The Start-Up Loans Company is a subsidiary of the British Business Bank. British Business Bank plc is a development bank wholly owned by HM Government which is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such.
The British Business Bank makes finance markets for smaller businesses work better, enabling the sector to prosper, grow and build economic activity. Their Business Finance Guide explores finance options and the journey from start-up to growth. Access the Business Finance Guide here: http://www.thebusinessfinanceguide.co.uk/bbb
Key Statistics
The following figures are drawn from data on delivery of loans up to 30th September 2019.
* Since 2012, the Start Up Loans scheme has delivered more than 67,000 loans, providing more than £534m of funding.
* In the financial year 2018/19, the scheme provided 7,869 loans with a total value of approximately £83m – helping to support around 22 businesses every day of the year.
* Since 2012, 35% of loan recipients were formerly unemployed or economically inactive.
* 15% of loan recipients since 2012 were aged between 18 and 24.
* Loan recipients report estimated average turnover of £42,000 in the first year after they have drawn their loan down.
* In the November Budget 2018, the Chancellor announced that the programme would be extended, with a target of 10,000 additional loans being issued in the year to April 2021.
For more information about Start Up Loans, please visit: https://www.startuploans.co.uk/
All these statistics are gross estimates, with the exception of the return on investment numbers, and are based upon Start Up Loans CRM and externally commissioned research undertaken by SQW Ltd, with support from BMG Research.
Government-backed programme has issued 3,882 loans to start-ups in the North East since 2012
12 November 2019: Entrepreneurship in the North East of England is on the rise, according to new figures published today from Start Up Loans, part of the British Business Bank.
They reveal that the government-backed programme has lent over £30.5m to small businesses in the North East since it was launched in 2012. In the last year alone, entrepreneurs in the region were granted loans totalling more than £4.8m (an increase of 18.6% since the end of October 2018).
To date, the programme has issued 3,882 loans to aspiring business owners in the North East, with the average loan amounting to £7,867.
Among them is Gary Ewing, from Bishop Auckland, County Durham, who took out a £25,000 Start Up Loan to launch Inspiral Cycles, a bicycle shop and online retailer that provides new bikes, parts and accessories plus a full workshop for the local community and beyond.
Gary had always had a passion for bikes, so when the local cycle store in Bishop Auckland closed, he and his wife Fiona spotted an opportunity and they decided to take the leap.
In addition to their own savings, Gary used the loan to purchase stock and equipment to kick start the business. The shop is now doing so well that Gary now employs four full-time staff and Inspiral Cycles is building an extension to double the size of the current space, in order to cater for the needs of their growing client base.
The award-winning Inspiral Cycles has built a five-star reputation with dedicated riders, families and anyone seeking cycling advice. Located on the edge of the Durham Dales, the area has some of the best cycling routes in the UK right on its doorstep along with a high street which required regeneration.
The Start Up Loans programme provides fixed-interest loans of up to £25,000 to aspiring business owners from across the UK, many of whom might be struggling to access other forms of finance. Since 2012, it has lent over £542.9 million through 67,862 loans.
In addition to finance, Start Up Loan applicants receive support from an experienced business advisor to help them prepare a business plan and cash flow report. Successful applicants are also offered 12-months of free mentoring to guide them through the early stages of their business journey.
Gary Ewing, founder of Inspiral Cycles, said: “Starting a business is the best thing I’ve ever done – but it hasn’t been an easy journey. I’ve had to negotiate many hurdles and challenges. Fortunately, Start Up Loans has supported me every step of the way.”
Richard Bearman, Managing Director of Start Up Loans, said: “Small businesses play a crucial role in their community, creating jobs and enabling economic growth. That the value of Start Up Loans to new businesses in the North East has increased by almost one fifth in the past 12 months is really very encouraging for the region.”
Breakdown of loans by region (as at end October 2019)
| UK Region | Loans Made | Amount Lent (£) | Average Loan Amount (£) |
|---|---|---|---|
| East Midlands | 3,796 | 28,035,639 | 7,386 |
| East of England | 4,514 | 35,475,053 | 7,859 |
| Isle of Man | 1 | 5,000 | 5,000 |
| London | 15,423 | 123,549,511 | 8,011 |
| North East | 3,882 | 30,538,973 | 7,867 |
| North West | 8,366 | 65,043,581 | 7,775 |
| Northern Ireland | 1,060 | 7,735,826 | 7,298 |
| Scotland | 4,152 | 31,262,824 | 7,530 |
| South East | 6,062 | 51,888,625 | 8,560 |
| South West | 5,602 | 43,964,855 | 7,848 |
| Wales | 3,096 | 28,219,410 | 9,115 |
| West Midlands | 5,691 | 43,687,422 | 7,677 |
| Yorkshire and The Humber | 5,752 | 48,196,017 | 8,379 |
| Region not obtained | 465 | 5,356,544 | 11,519 |
| Grand Total | 67,862 | 542,959,280 | 8,001 |
ENDS
For more information, please contact:
Alice Milne, Account Manager
Notes to editors
The Start-Up Loans Company, part of the British Business Bank, was formed in June 2012. The Start Up Loans scheme provides personal loans for business purposes of up to £25,000 at a 6% fixed interest rate per annum and offers free dedicated mentoring and support to each business.
The primary aim of the Start Up Loans scheme is to ensure that viable start-ups and early-stage businesses have access to the finance and support they need in order to thrive. A network of Delivery Partner organisations support applicants in all regions and industries throughout the UK. The Start Up Loans scheme is not designed to generate a commercial profit. Capital payments together with the interest are recycled to help meet our customers’ increasing demand for finance.
Free guides on a range of subjects related to starting a business are available on the Start Up Loans website: https://www.startuploans.co.uk/free-start-up-guides/. You can find recent media press releases here: https://www.startuploans.co.uk/media-centre/.
The funding for the Start Up Loans scheme is provided by the Department for Business, Energy and Industrial Strategy (BEIS). The Start-Up Loans Company is a subsidiary of the British Business Bank. British Business Bank plc is a development bank wholly owned by HM Government which is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such.
The British Business Bank makes finance markets for smaller businesses work better, enabling the sector to prosper, grow and build economic activity. Their Business Finance Guide explores finance options and the journey from start-up to growth. Access the Business Finance Guide here: http://www.thebusinessfinanceguide.co.uk/bbb
Key Statistics
The following figures are drawn from data on delivery of loans up to 30th September 2019.
* Since 2012, the Start Up Loans scheme has delivered more than 67,000 loans, providing more than £534m of funding.
* In the financial year 2018/19, the scheme provided 7,869 loans with a total value of approximately £83m – helping to support around 22 businesses every day of the year.
* Since 2012, 35% of loan recipients were formerly unemployed or economically inactive.
* 15% of loan recipients since 2012 were aged between 18 and 24.
* Loan recipients report estimated average turnover of £42,000 in the first year after they have drawn their loan down.
* In the November Budget 2018, the Chancellor announced that the programme would be extended, with a target of 10,000 additional loans being issued in the year to April 2021.
For more information about Start Up Loans, please visit: https://www.startuploans.co.uk/
All these statistics are gross estimates, with the exception of the return on investment numbers, and are based upon Start Up Loans CRM and externally commissioned research undertaken by SQW Ltd, with support from BMG Research.