Report and publications
Our annual Small Business Finance Markets report provides a comprehensive and independent assessment of the funding landscape for smaller businesses in the UK.
In this the eleventh report, we examine business investment by smaller businesses, the impact it has on productivity and the role of access to finance in supporting business investment.
Key findings:
- Smaller businesses generally invest less than larger businesses relative to their turnover. Furthermore, business investment in the UK has also been low historically, with investment growth slower post-global financial crisis. This is a key reason for the country’s productivity lag compared to many comparable countries.
- High cost of credit and risk aversion are key factors behind the lack of investment for smaller businesses.
- Fewer smaller businesses are using external finance, but the value of finance edged up in 2024.
- Finance markets are evolving to reach entrepreneurs from different backgrounds and in more places.
- Despite this, Ethnic Minority-led businesses as a whole indicate difficulties in accessing finance, with Black entrepreneurs particularly affected
- Challenger and specialist banks continue to outperform the bigger traditional banks, increasing their share of lending to smaller businesses in 2024.
- Smaller businesses are increasingly focused on environmental sustainability as a priority, and are beginning to consider using external finance to fund this
Further details and insights can be found in this year’s report.
British Business Bank 2024 Business Finance Survey
The Bank’s 2024 Business Finance Survey was undertaken by Ipsos and surveyed 1,547 smaller businesses between September and December 2024. The survey covers topics including demand for finance, experiences in seeking finance and awareness of finance. The survey also covers environmental sustainability including questions on the actions businesses have taken to improve their environmental sustainability and how they have funded these actions. The results are weighted to reflect the UK SME population. Download the Business Finance Survey Results
Small Business Finance Markets 2024/25
Our Small Business Finance Markets 2024/25 report 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.