Business News Round Up (02/09/2021)
UK manufacturing growth slows in August amid supply chain issues
UK manufacturing growth slowed to a five-month low in August amid supply chain issues, according to a survey released on Wednesday. The IHS Markit/CIPS manufacturing purchasing managers’ index declined to 60.3 from 60.4 in July. Nevertheless, it remained above the 50.0 mark that separates contraction from expansion and above the long-run average of 51.9. The survey found that manufacturers continued to face rising constraints caused by supply chain issues. Shortages of inputs and delivery delays disrupted production schedules, leading to slower output growth, and also marked increases in input prices. Companies nonetheless still achieved solid gains in output, new orders, and employment.
Scottish Enterprise details £4.6 million worth of failed investments
Scottish Enterprise generated £55.6m of income from its core investment portfolio last year, despite the impact of the pandemic. However, the economic development agency has more than £221m outstanding in borrowings due to be paid back to the Scottish Government. No interest is payable, and the funding is repayable over a period of up to 21 years. It invested £78.1m into early stage companies, leveraging £122m. The value of equity investments and loans to companies rose to £460.6m during the year. Scottish Enterprise lost £4.6m of taxpayers money through investing it into promising companies that eventually failed. Big Data for Humans offered a leading edge service in customer insights automation but dissolved in 2020 following the company failing to renew contracts with around 10 small to medium-sized enterprises (SMEs). Scottish Enterprise invested £1.3m and wrote it off as a loss.
https://www.insider.co.uk/news/scottish-enterprise-details-46-million-24876553
Fintech firm BankiFi secures £2.2m boost to expand and target new markets
A Manchester fintech business has secured a £2.2m investment in a funding round led by Praetura Ventures, with participation from the Greater Manchester Combined Authority (GMCA). BankiFi, which specialises in payment processing and financial administration services for SMEs, was founded to help financial institutions better serve small and medium-sized businesses. The business enables banks to provide a set of integrated services, including invoicing, payments, cash management and accounting, which are designed to help businesses reduce time spent on financial administration. The £1.5m investment by Manchester-based Praetura Ventures, the VC fund that targets early-stage businesses in high-growth sectors, is joined by an additional £700k from GMCA. This new funding will allow BankiFi to expand its product and service offering, grow its client base and target new domestic and overseas markets.
https://www.business-live.co.uk/technology/fintech-firm-bankifi-secures-22m-21455159
Quarter of a million Scots entrepreneurs set up business in 2020
A quarter of a million people in Scotland were setting up or running new businesses in 2020, despite the challenges of the COVID-19 pandemic, a survey has found. The Global Entrepreneurship Monitor (GEM) survey estimates that 7.3% of the Scottish population – 247,000 adults – were actively engaged in setting up a business or already running an enterprise established in the last three-and-a-half years. A further 5.7% – 194,000 – were entrepreneurs running more established businesses. Around 60,000 young people in Scotland, or 13% of 18-24 year olds, were early-stage entrepreneurs, the highest rate among the home nations. Entrepreneurship among people under 30 years old in Scotland has steadily grown from being the lowest in the UK at 3.5% in the 2007/09 period. GEM measures rates of entrepreneurship across multiple phases in the general adult population. In 2020, nearly 140,000 people from 46 economies across the globe were surveyed, with 2,019 responses from Scotland, making it the world’s most authoritative comparative study of entrepreneurial activity.
https://www.strath.ac.uk/whystrathclyde/news/quarterofamillionscotsentrepreneurssetupbusinessin2020/