Nations and Regions Tracker Infographic 2023

Use of external finance overall has fallen but is recovering

36%

of smaller businesses were using external finance in 2022, down 7% points from 43% in 2021

Finance is growing again

in early 2023, returning close to 2021 levels (43%)

6% point

decline in grants and 5% point decline in bank loans

53%

of smaller businesses were successful in applying for external finance in H1 2023, up from 44% in 2022

Equity finance decline beginning to ease

2023 decline in equity investment has slowed

suggesting a return to 2018 levels after a period of exceptional activity

60%

of UK equity deals are made in the Nations and regions outside of London

Innovation-led clusters emerging throughout the UK

33

innovation-led clusters have been identified, spanning 196 local authorities across the UK

University spin-outs are playing a crucial role

in supporting innovation-led clusters across the UK

University spin-outs are key players in tech sectors

making up one quarter or more of the UK's equity deals (2011 - Q2 2023) across life sciences, medical technology, hardware, materials technology and nanotechnology

23%

of tech & intellectual property deals across the 33 clusters involved university spinouts since 2011

Smaller businesses in coastal towns & cities face challenges in access to finance

The productivity gap

of the UK’s equity deals (between 2011 and Q2 2023) where made by businesses in coastal towns, despite making up 12% of the UK resident population

4%

of the UK’s equity deals (between 2011 and Q2 2023) where made by businesses in coastal towns, despite making up 12% of the UK resident population

Lower appetite for using external finance to grow

in coastal towns (26%) compared to the UK average (31%)

Net zero equity deals

in coastal towns are double the share seen in the UK as a whole, representing 14% of all deals compared to 7% of net zero equity deals across the UK

British Business Bank remains committed to helping to reduce regional imbalances

1,900 small businesses

are supported by the British Business Bank’s existing regional funds up to March 2023

6

new Nations and Regions Investment Funds are being launched, committing a further £1.6bn of investment