The Start Up Loans programme is a game-changer for entrepreneurs in Yorkshire and the Humber, providing much-needed financial support for new businesses outside of London. The British Business Bank has just hit a significant milestone—£100m in loans distributed to over 10,000 businesses in the region. This initiative is more than just about numbers; it’s about empowering small business owners from all backgrounds, including those who have historically found it harder to secure funding.
In this post, we’ll dive into the highlights of the Start Up Loans programme, explore some success stories, and discuss why it’s such a crucial resource for budding entrepreneurs in Yorkshire.
The Start Up Loans Programme: A Lifeline for Entrepreneurs
The Start Up Loans programme provides personal loans for business purposes, offering entrepreneurs the capital they need to grow their businesses. But it’s not just about funding. The programme also provides mentoring and ongoing support for 12 months to help businesses thrive.
What sets the programme apart is its commitment to reaching traditionally underfunded areas, including Sheffield, where over £10m in funding has been allocated to local businesses. This is a significant step in supporting entrepreneurs who might otherwise struggle to access capital.
Key benefits of the Start Up Loans programme include:
- Loans ranging from £500 to £25,000 for business purposes
- 12 months of free mentoring to help businesses navigate the early stages of growth
- Focus on diverse entrepreneurs, including those from Black, Asian, and Other Ethnic Minority backgrounds
- Loans for young entrepreneurs (18-24 years old), with over £10m distributed to this group
Yorkshire’s £100m Milestone: A Region of Opportunity
It’s clear that Yorkshire is a hotbed of entrepreneurial activity. The Start Up Loans programme has now granted more than £100m in loans to businesses in the region, and this milestone underscores the incredible potential in areas outside of London.
- Sheffield, for example, has seen over £10m in funding, with more than 10% of the region’s total loan value going to this historically underfunded city.
- 18% of the loans in Sheffield have gone to entrepreneurs from Black, Asian, and other ethnic minority backgrounds, showing the inclusivity of the programme.
- 35% of the loans have been awarded to female-founded businesses, demonstrating the programme’s focus on supporting diverse founders.
The sheer amount of funding pouring into the region is a testament to the incredible talent and ambition of Yorkshire’s entrepreneurs.
Success Stories from Yorkshire: Entrepreneurs Who Are Thriving
Let’s take a closer look at some businesses in Yorkshire that have benefitted from the Start Up Loans programme:
Frazer’s Coffee Roasters (Sheffield)
One of the standout success stories comes from Frazer Habershon, founder of Frazer’s Coffee Roasters in Sheffield.
Frazer’s journey is nothing short of inspirational. Originally training to be a plumber, he was involved in a severe car accident that led to long-term health complications. Unable to return to a full-time job, Frazer pivoted to the hospitality industry, and over time, developed a passion for coffee.
He identified a gap in the market: there were no local cafes offering ethically sourced coffee. Frazer started by roasting his own coffee using a converted BBQ, and after a couple of years, he opened a 50-seat coffee shop in Sheffield’s Arundel Street. His business has since grown rapidly, acquiring a second coffee roaster and expanding his customer base to include SMEs and high street retailers.
With the help of a £20,000 Start Up Loan, Frazer has been able to scale his business and supply more venues with his ethically sourced coffee.
Frazer’s story is proof that, with the right support, ambitious entrepreneurs can turn their passion into a profitable venture, even after facing life-changing challenges.
Woof the Yorkshire Dog Shop (Yorkshire)
Another success story is Woof the Yorkshire Dog Shop, a business that specializes in high-quality products for pets. With the support of the Start Up Loans programme, Woof’s founder was able to access the capital needed to launch a unique dog store that combines online and offline retail experiences.
By focusing on high-quality, locally sourced pet products, the business has quickly gained a loyal customer base. The loan also allowed them to expand their online presence, which has been key to their growth.
The Importance of Supporting Underrepresented Groups
One of the most commendable aspects of the Start Up Loans programme is its focus on supporting underrepresented groups in the business world. More than £12m of the funding has gone to entrepreneurs from Black, Asian, and other ethnic minority backgrounds (excluding white minorities). This focus is crucial, as it ensures that diverse entrepreneurs have the same access to capital and resources as anyone else.
The programme has also been successful in encouraging young entrepreneurs, with 1,331 loans granted to individuals aged 18-24, totalling almost £10m in funding. These loans provide young people with the tools to start their own businesses, nurturing the next generation of innovative leaders.
The Role of Mentoring and Support
It’s important to note that the Start Up Loans programme doesn’t just provide financial support—it also offers mentoring for up to 12 months. This mentoring is an essential part of the programme, providing entrepreneurs with:
- Guidance on business planning and strategy
- Tips for managing cash flow and growth
- Support for developing marketing and sales strategies
- Access to a network of business mentors and industry experts
By pairing financial support with expert guidance, the programme ensures that businesses are not just funded—they are equipped for long-term success.
How the Start Up Loans Programme is Shaping the Future of Business in Yorkshire
The Start Up Loans programme is helping to shape the future of business in Yorkshire, creating a ripple effect that benefits local communities and the wider economy. Here’s how:
- It’s supporting local innovation, allowing businesses to thrive in historically underserved areas.
- It’s encouraging economic growth by enabling entrepreneurs to bring their ideas to life.
- It’s helping to create jobs, with many loan recipients hiring staff as their businesses grow.
- It’s fostering a culture of inclusivity, ensuring that all entrepreneurs, regardless of their background, have access to the support they need to succeed.
