Small Business Minister: This Government Is Backing Small Businesses In Lancashire

This government is backing small businesses in Lancashire

By Kelly Tolhurst MP, Small Business Minister

From the local corner shop or hairdresser to manufacturers and tech start-ups, small businesses showcase our entrepreneurial spirit as a nation. And they play a huge part in unleashing the UK’s potential.

Running your own business is a fantastic thrill and privilege. But it also takes hard work, determination and crucially, funding, to get a business idea off the ground, employ staff and grow.

Before I got into politics, I ran my own business for years. I know all too well what it takes to train and recruit staff, chase invoices and plan for expansion in the future. So as Small Business Minister, it’s great to see just how much support we make available to help entrepreneurs get the funding, resources and advice they need.

Funding is the lifeblood of any business. But we know that many businesses have trouble accessing finance, particularly when they are just starting out.

381,000 new businesses started in the UK last year, with the North West seeing the second highest business start-up rate in the country.

But we know that small businesses in the wealthiest areas are borrowing far more than those in the poorest parts of the country - and we are taking steps to tackle this.

We want to make the UK the best place in the world in which to work and start a business, and with its long-honed entrepreneurial spirit, the North West has so much to offer.

We need growth, jobs and opportunity in every part of the country, not just London.

That’s why this government is backing schemes like the British Business Bank (BBB) and its Start Up Loans programme. It provides low, fixed interest loans along with free mentoring, often supporting those who lack the credit history required by traditional lenders.

In total, the government-owned British Business Bank has issued over £150 million in Start-up Loans to businesses in the North of England. That’s more than £20 million more than London received in the same period. The North West alone received £60 million, much of it in Lancashire. Businesses in Bury alone received £2.1 million, while Accrington and start-ups Hyndburn got over £1 million.

These include innovative start-ups like Northern Monkey, a dynamic craft brewery in Bolton, and Studio Knot, which makes designer rugs out of recycled plastic in Prestwich.

These aren’t grants or giveaways. Applicants must go in with a business plan, show their credit history and demonstrate that they’re up to the challenge of running a business. Most applicants successfully repay the loan and go on to set up a thriving and profitable new business.

The programme is helping people from all backgrounds to start great companies and realise their ambitions. Almost 40% of all loans went to female entrepreneurs and 20% to people from an ethnic minority background. 35% of people receiving loans have been previously unemployed.

In addition to the support provided by the British Business Bank, our Northern Powerhouse Investment Fund has also invested over £135 million in smaller businesses across the North of England. But we are determined to do more to level up across the country.

The North of England can be an engine of growth for the UK. Regions like the North West are playing a vital part in that, and dynamic businesses like Studio Knot are taking advantage of government support and powering innovation, job creation and growth.

I’d encourage anyone looking to strike out and start their own business to seize the fantastic range of support available from our brilliant British Business Bank.