London Stock Exchange welcomes John Glen MP to celebrate the British Business Bank's fourth annual Small Business Finance Market report
The British Business Bank is the UK's national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
John Glen MP, Economic Secretary to the Treasury and City Minister, opened the market on behalf of the British Business Bank as it publishes its fourth annual Small Business Finance Market report.
Though the report finds that some progress has been made in developing high-growth businesses in the UK, and in the provision of equity finance to support that growth, British Business Bank analysis suggests more UK start-ups could become fast-growth businesses with greater availability of long-term patient capital. Such finance is a key ingredient in enabling firms to scale up and a significant economic impact could be made if availability was raised to the same level as the US.
While scale-up businesses’ financing needs are complex, the recent Autumn 2017 Budget announcement of a programme to help enable up to £13bn of patient capital through the British Business Bank’s activities is a significant step toward meeting those needs.
Keith Morgan, British Business Bank CEO, said:
“A core objective of the British Business Bank is to encourage greater diversity of finance, so we welcome the growth in the uptake of equity finance and other alternatives to traditional lending.
“It can’t be overstated how important it is to build a more complete funding ladder for economically important high-growth businesses no matter where they are located. Scale-ups need more long-term patient capital throughout all stages of their development to be world-beating companies, and we look forward to using our new resources allocated at Autumn Budget to unlock more of this type of capital.”
John Glen MP, Economic Secretary to the Treasury and City Minister, said:
“Small businesses are the backbone of our economy, and as this report highlights, they account for over half of all private sector income in the UK, and create millions of jobs. I’m grateful for the work the British Business Bank does to ensure this sector continues to thrive. Their work with us to create a £2.5bn patient capital investment fund will help small businesses innovate and grow.”
The British Business Bank is currently supporting over £4bn of finance to more than 60,000 smaller businesses and participating in a further £6.6bn of finance to mid-cap businesses (as at end September 2017).