In that time, there has been a 23% increase in the number of first loans in the North West, compared to the five-year period prior. This amounts to a near-50% (49%) increase in the total value of first loans between the two periods.*
Start Up Loans data on loan volume applications shows 2020 was a potentially ‘transformational’ year for UK startups. In the financial year that ended just around the time lockdown was first introduced, 8,652 Start Up Loans supported UK start up businesses. The following year this rose to 11,322, a 31% increase, and numbers have remained higher than pre-pandemic levels ever since.
The five-year period since the first lockdown has also seen a significant increase in Start Up Loans provided to business owners from a Black, Asian and Other Ethnic Minority background. Across the UK, the proportion of loans to recipients from an Ethnic Minority background increased 5.39% to 19.8%
The pandemic lockdowns brought normal life to a temporary halt and offered a unique opportunity for people to rethink their futures and pursue their dreams. This prompted many to seek alternative careers, like business owners Alison Cheetham and David Edwards who secured a £10,000 Start Up Loan from GC Business Finance to help get their business up and running.
The pair founded specialist running shop Sports Feet in 2020 to embrace their shared passion for running. The business sells running shoes and accessories from its shop and organises a social running group that is accessible to runners of all levels.
They established the business during the pandemic after the travel industry closed down overnight and they needed to adapt their travel agency business model. Because of Covid 19 restrictions, in the first six months of operating the business was closed for 130 days.
Despite setting up in one of the most difficult times for businesses, Sports Feet is now the only specialist running shop in Stockport and is well-loved within its community. Since receiving the Start Up Loan, turnover has grown year on year by a minimum of 50% and the thrice weekly running group has increased from six to 58 members, helping encourage fitness in the local community. Alison and David were also awarded Barclays Entrepreneur of the Year award in 2023, a recognition of the huge success of the business during the pandemic.
Alison Cheetham, Co-Founder of Sports Feet, said: “Launching our business during the pandemic brought us many uncertainties, but over the past five years we have built Sports Feet into a business that brings together members of the Stockport community. Our business not only gives people a place to run, but it also gives them a space to meet new people. The Start Up Loans programme made securing the right funding to get Sports Feet off the ground straightforward, and we’re thankful for their part in our journey.”
Richard Bearman, Co-Chief Banking Officer, British Business Bank, British Business Bank: “When I think about the Start Up Loans programme, the pandemic was a real pivotal moment. So often I meet business owners and their stories start with how lockdown was the chance to stop and really think about what they wanted to do and achieve.
“We saw a huge increase in the number of loans during 2020 and into the early part of 2021. Although some of that demand for finance has understandably cooled off, we still see a lot more people seeking Start Up Loans finance for a business. In that respect the shock of lockdowns could well have contributed to a change in how potential business owners thought about the opportunities of entrepreneurship.”
Start Up Loans is a government-backed programme that offers fixed-interest loans and mentoring to entrepreneurs in the UK. Since its inception in 2012 the programme has delivered over £1.2 billion in funding to more than 120,000 entrepreneurs nationwide, and £145m to 14,884 the North West.