Use of external finance overall has fallen but is recovering
![](/sites/g/files/sovrnj166/files/2023-11/british-business-bank-infographic-icon-768x768.png)
36%
of smaller businesses were using external finance in 2022, down 7% points from 43% in 2021
![](/sites/g/files/sovrnj166/files/2023-11/icon-pound-stacks-chart-1080x1080.png)
Finance is growing again
in early 2023, returning close to 2021 levels (43%)
![](/sites/g/files/sovrnj166/files/2023-11/icon-infographic-bank-with-bottom-arrow-768x768.png)
6% point
decline in grants and 5% point decline in bank loans
![](/sites/g/files/sovrnj166/files/2023-11/clipboard-contract-stamp-tickbox-768x768.png)
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
![](/sites/g/files/sovrnj166/files/2023-11/woman-pointing-at-graphs-chart-768x768.png)
2023 decline in equity investment has slowed
suggesting a return to 2018 levels after a period of exceptional activity
![](/sites/g/files/sovrnj166/files/2023-11/icon-infographic-uk-map-pie-chart-768x768.png)
60%
of UK equity deals are made in the Nations and regions outside of London
Innovation-led clusters emerging throughout the UK
![](/sites/g/files/sovrnj166/files/2023-11/icon-uk-map-with-states-highlighted-768x768.png)
33
innovation-led clusters have been identified, spanning 196 local authorities across the UK
![](/sites/g/files/sovrnj166/files/2023-11/woman-graduate-degree-university-logo-768x768.png)
University spin-outs are playing a crucial role
in supporting innovation-led clusters across the UK
![](/sites/g/files/sovrnj166/files/2023-11/icon-pie-chart-technology-768x768.png)
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
![](/sites/g/files/sovrnj166/files/2023-11/man-woman-shaking-hands-lightbulb-icon.png)
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
![](/sites/g/files/sovrnj166/files/2023-11/british-business-bank-infographic-icon-768x768.png)
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
![](/sites/g/files/sovrnj166/files/2023-11/pound-symbol-chart-bike-holiday-umbrella-768x768.png)
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
![](/sites/g/files/sovrnj166/files/2023-11/pound-coin-two-icons-upward-arrow-768x768.png)
Lower appetite for using external finance to grow
in coastal towns (26%) compared to the UK average (31%)
![](/sites/g/files/sovrnj166/files/2023-11/bar-chart-with-green-leaf-icons-768x768.png)
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
![](/sites/g/files/sovrnj166/files/2023-11/handshake-open-sign-icon-768x768.png)
1,900 small businesses
are supported by the British Business Bank’s existing regional funds up to March 2023
![](/sites/g/files/sovrnj166/files/2023-11/uk-map-with-pound-icon-768x768.png)
6
new Nations and Regions Investment Funds are being launched, committing a further £1.6bn of investment