Business News Round Up (04/03/2025)
Scottish small business equity investment sees significant rise
Equity investment levels in Scotland’s smaller businesses grew in 2024, bouncing back from a challenging 2023, according to new research from the British Business Bank. The Bank’s Small Business Finance Markets 2024/25 report found that during the first three quarters of 2024 the investment value of announced equity deals involving smaller businesses in Scotland rose 14.2% on the same period the previous year to reach £407 million. The rise was more than double the UK-wide increase of 6.6% and put Scotland on track to record the third highest annual figure for equity investment in the last decade. Only the standout years of 2021 and 2022, when there were £417m and £562m of deals respectively, were better. While the number of transactions dropped slightly by 1.5% to 135, this was the second-best year-on-year change among the UK’s Nations and regions and well ahead of the average drop of 24.3%.
North West tops lending league as ecosystem remains strong says bank chief
The regional manager of the British Business Bank in the North West says the region has shown the largest increase in use of external finance compared to the rest of the UK. Citing evidence from the British Business Bank’s Small Business Finance Markets 2024/25 report, published today (Tuesday 4 March 2025), she said usage of external finance by smaller businesses in the North West increased by 8 percentage points in the first half of 2024. Delyth Edwards, Senior Network Manager, North West England, British Business Bank, said: “Businesses across the UK have been operating in more challenging economic conditions in recent years, but the North West business ecosystem remains active and strong. We had the largest increase in external finance usage out of all UK regions, demonstrating the North West’s resilience in the face of strong economic headwinds.
£83bn boost to UK economy over the next decade if Britain’s SME manufacturers achieve their growth ambitions
Almost two-thirds (64%) of the 250,000 active manufacturing SMES in the UK have the ambition to grow into large businesses, which could deliver £83bn to manufacturing GVA over the next decade, new research has revealed. This reality has the potential to propel the UK from our current 12th place to become the 7th largest manufacturing economy in the world, having recently dropped out of the top 10. According to the new Make UK/Civitas report, The Growth Mission: A Blueprint for Scaling up SME Manufacturers, government must ignite growth by introducing a super-growth allowance (150% capital allowance) and create an enhanced Growth Enterprise Scheme (GEIS) to turbocharge Britain’s small and medium sized enterprises (SMEs.) Such tax reliefs would encourage SME businesses to reinvest in their growth, improve productivity, and adopt new technologies, helping them scale-up, create jobs, and boost progress towards the government’s growth goal.
Praetura Ventures announces return of NPIF-II funded programme
North West-based venture capital firm Praetura Ventures has announced the return of PraeSeed, the capital-first programme designed to support pre-seed and pre-revenue businesses in the North. The programme returns after a successful first year in 2024 when it was designed to help bridge the early-stage funding gap by providing equity investment and hands-on support to founders looking to build and scale from the region. The initiative is funded by NPIF II – Praetura Equity Finance, which is managed by Praetura as part of the Northern Powerhouse Investment Fund II. The application stage for the 2025 cohort will close in mid-April with up to 12 businesses securing a place, and up to seven of these receiving a £200,000 investment from NPIF II – Praetura Equity Finance at the end of the programme. This year’s cohort will start their six-week programme in June from Praetura’s Manchester office.
https://businesscloud.co.uk/news/praetura-ventures-announces-return-of-npif-ii-funded-programme