In that time, there has been a 16% increase in the number of first loans in Yorkshire and the Humber, compared to the five-year period prior.*
This amounts to a more than £12m increase in the total value of first loans between the two periods. The average loan value to entrepreneurs also increased by £1,633, or 14% in Yorkshire and the Humber.
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%, meaning it is now 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 owner Amy Hogarth who took out a £15,000 Start Up Loan to move her luxury fragrance business into a bigger premises.
Amy founded The CAHM Collective in 2020, turning what started as a lockdown hobby and something to focus on while going through a challenging time, into a thriving business. Having previously made candles, and with an entrepreneurial spirit shining through, Amy started by selling her products to neighbours. These products include candles, diffusers, wax melts and more, which are all cruelty free, sustainably sourced, and vegan friendly.
The Start Up Loan helped Amy move to a larger premises in Sunny Bank Mills, Leeds, which provides a commercial and cultural space within the popular city. The funding also supported Amy in purchasing stock, resulting in the business being able to fulfil an order from upmarket retailer, Booths. In October 2022, Amy quit her full-time job to work on The CAHM Collective full time.
The business now boasts over 120 UK stockists of its products, as well as having an ecommerce site that reaches all corners of the world.
Amy Hogarth, founder of The CAHM Collective, said: “I always had a dream to be self-employed, and when the pandemic hit, it seemed like the perfect opportunity to take what had previously been a hobby full time. I wanted to have a real-life impact on people and promote the importance of having positive mental health and wellbeing, and that’s exactly what we do through our products – it’s all about self-care and taking time to look after yourself. The Start Up Loan was vital in supporting our move to Sunny Bank Mills as we started to outgrow our previous space and helped us secure bigger contracts like Booths.”
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 £109m to 10,890 in Yorkshire and the Humber.