Small Business Finance Markets Report 2023

In addition to the detailed analysis of market developments and individual finance markets we provide each year, our Small Business Finance Markets 2022/23 report (PDF, 5.1MB) highlights the role of finance in driving innovation across the UK’s small business population and in supporting small businesses to provide solutions to achieve the UK’s net zero targets.

Key findings contained in the 2022/23 report include the following:

  1. 2022 has been a challenging year for the UK’s 5.5m smaller businesses, with high energy prices and inflation. This put pressure on many small businesses’ financial positions.
  2. Lending volumes grew in 2022 with challenger and specialist banks accounting for a record share of gross lending in 2022. Use of external finance figures, however, point to increasing signs of difficulties in accessing finance.
  3. Equity finance raised by small businesses saw a turning point midway through 2022 following two years of very strong growth.
  4. Finance to support both new-to-market and new-to-business innovations are essential to delivering long-term economic growth in the UK economy.
  5. Equity flows are supporting smaller businesses to develop net zero solutions, with net-zero related deals making up an increasing share of activity. This points to more equity and debt funded investment in smaller businesses solutions.

Further details and insights can be found in this year’s report (PDF, 5.1 MB).

SBFM infographic

View the full Small Business Finance Markets report infographic

The British Business Bank 2022 Business Finance Survey

The Bank’s SME Finance Survey (PDF, 1,025 KB) was undertaken by Ipsos MORI and engaged 2,213 small and medium businesses (ie enterprises with fewer than 250 employees) in Q4 2022. The survey covers core topics alongside a number of new questions to establish SME awareness and implementation of Environmental, Social, and Governance factors to their businesses. Survey data was weighted to reflect UK SMEs from BEIS business population estimates. Download the SME Finance Survey Report (PDF, 1025 KB)