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Start Up Loans programme has positive impact on small business survival

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Smaller businesses backed by the government’s Start Up Loans programme have higher survival rates than other businesses, finds an independent evaluation, conducted by SQW working in partnership with Professor Mark Hart, Qa Research and The Data City.

The programme also supports a significantly greater proportion of smaller businesses outside London and the South East, as well as female and Ethnic Minority entrepreneurs.

Job creation - In addition to the employment of the loan recipients themselves, one additional employee job was created for each loan, on average. Since the programme started in 2012, Start Up Loans has provided more than £1.1bn of start up financing to UK start up and early-stage businesses, across more than 118,000 separate loans.

Richard Bearman, Co-Chief Banking Officer, British Business Bank commented: “This evaluation is a very positive independent validation of the importance of Start Up Loans to financing and supporting UK start ups. The evaluation clearly shows the Start Up Loans programme helps support start up and early-stage businesses to survive longer, grow more and create jobs across the UK, mostly outside London and the South East.

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