Nations and Regions Tracker Infographic 2023

Use of external finance overall has fallen but is recovering

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36%

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

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Finance is growing again

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

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6% point

decline in grants and 5% point decline in bank loans

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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

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2023 decline in equity investment has slowed

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

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60%

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

Innovation-led clusters emerging throughout the UK

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33

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

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University spin-outs are playing a crucial role

in supporting innovation-led clusters across the UK

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Univeristy 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

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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

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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

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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

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Lower appetite for using external finance to grow

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

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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

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1,900 small businesses

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

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6

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