Investment in East Mids SMEs soars, says report
Equity investment in East Midlands smaller businesses reached £74m by the end of 2021’s third quarter, a 72% increase compared to the same period in the previous year, according to new figures from the British Business Bank’s eight annual Small Business Finance Market Report 2021/22.
The £74m investment was made across 41 deals, a 78% increase in number of deals against the previous year. With one quarter of data still to go, investment has nearly exceeded the £76m invested in the whole of 2020 in the region.
Nationally, equity investment in smaller businesses surged in 2021, with figures on course to double versus the previous year.
Demand for finance in the East Midlands remains robust, with 31% of smaller businesses surveyed stating they would be happy to use finance to grow. On the supply side, 2021 saw growth in the region’s local venture capital sector, with 17 unique investors involved in venture capital now present in the region, nearly double the nine identified in 2017.
Dr Sophie Dale-Black, Midlands UK network director at the British Business Bank, said: “This report shows that following an incredibly challenging economic period for smaller businesses, they are not only coming back strong, but there is a clear appetite for growth.
“External finance will continue to play a critical role and it’s welcome to see a growing local investor presence which we know is an important driver of investment activity. Through our programmes, the British Business Bank will continue to support the country’s smaller businesses by improving access and options to secure external finance.
“There is work to be done, breaking down regional barriers to access to finance remains key to levelling up economic opportunity, which we remain committed to addressing.”
