Business News Round Up (06/10/2023)
UK SMEs unable to access financing needed to grow amid economic uncertainty
New research by Praetura – the Manchester-based debt and equity capital provider to UK SMEs – has revealed that three in five (59%) SMEs and their brokers surveyed say that it is more difficult now to access the funding they need to grow than in the last five years, as a funding crunch hits Britain’s small businesses. UK SMEs suggest that servicing demand is their biggest challenge, not creating it. Accessing funding is the one of the biggest challenges firms face, according to 43% of the small businesses surveyed by Praetura. This follows rising costs (68%) as businesses’ biggest challenge. Compared to only 24% who suggested business development was holding them back. The research coincides with Praetura’s new report – Fund the Gap: Financing Futures for UK SMEs – which analyses the state of the funding landscape for UK SMEs. The report features contributions from major business leaders, finance experts and the SME community including British Business Bank, NACFB, EY and others. Fresh capital is at the forefront of firms’ growth plans, with 71% reporting that they’re looking for funding to accelerate expansion. But SMEs have reported frustration at not being able to secure the capital they need: 73% say that institutional lenders have failed to take the time to understand their businesses. The news comes amid recent forecasts that the UK economy could remain stagnant into 2025, as KPMG published forecasts that growth will slow to 0.4% this year and 0.3% in 2024.
British Business Bank awards almost 10,000 start-up loans
The British Business Bank awarded almost 10,000 start-up loans to businesses throughout the 2022/23 financial year, according to new data. BusinessComparison wanted to examine the regions receiving the most Government start-up loans and investigate which UK cities are start-up ‘hotspots’. To do so, they sent FOIs to the British Business Bank and the councils of the 50 largest UK cities. Overall, 9,536 start-up loans were awarded to new businesses during the last financial year. In total, these loans cost a combined £120m. This was less than the years previous with 10,372 loans awarded in 2021/22 and 11,318 handed out throughout 2020/21. So far in 2023/24, 3,141 loans have been awarded costing £40.2m. Business Comparison found that London was the region boasting the highest number of start-up loans during the financial year of 2022/23 with 1,491 in total. This was closely followed behind by the South East (1,217), and North West (1,091), Yorkshire and The Humber (966), South West (856) West Midlands (769), East of England (757), Scotland (665), East Midlands (539), North East (425) and Northern Ireland (149).
https://www.insidermedia.com/news/national/british-business-bank-awards-almost-10000-start-up-loans
UK Government invest £70m on new future telecoms technologies
The UK Government has invested £70m in the Future Telecoms UKRI Technology Missions Fund to turbocharge the development of new telecommunications technology. The new investment will support ambitions to become a global leader in 6G technology, improving the capacity and speeds of data transfer and improving the energy efficiency in networks through cloudification. The research and development in telecoms aim to benefit the public by improving internet coverage across the country, reducing energy consumption, and enabling the universal rollout of self-driving cars to be possible. Alongside the investment, the UK has joined a new global coalition to bolster telecoms security, resilience, and innovation. The UK joins Australia, Canada, Japan, and the US as part of the new Global Coalition on Telecommunications (GCOT). The coalition will help ensure communications networks remain resilient amidst supply chain disruption and cyber-attacks. Responding to the news Derek Mackenzie, CEO of Investigo, part of The IN Group, said: “Telecommunications networks are the lifeblood of economic activity, connecting businesses and driving productivity. However, there is no point in investing millions into this technology, if you don’t have the next generation of skilled workers in place who can develop and improve it. That’s why these new University-led research hubs will play such a crucial role in equipping graduates with the knowledge and skills they need to thrive, giving the UK a robust talent pipeline for the long term.”
Scotland stands out with September footfall uptick
Scottish footfall increased by 1% in September year-on-year and was 0.6 percentage points better than August. The latest Scottish Retail Consortium (SRC) and Sensormatic IQ data also showed that this is better than the UK average decrease of 2.9% year-on-year. Scottish shopping centre footfall increased by 3.7% in September, also 0.6 percentage points better than July. Meanwhile, footfall in Edinburgh increased by 7.5% year-on-year, while Glasgow decreased by 2.9%. David Lonsdale, director of the SRC, noted that this was the third consecutive monthly improvement, with Scotland being the only part of the UK to witness an increase in shopper footfall last month. “Shopping centres and Edinburgh city centre fared well, and whilst Glasgow witnessed a dip it was slightly less worse than seen the month before. That said, overall shopper footfall in Scotland is still well shy of the levels seen prior to the pandemic. “ The SRC has also announced that Debbie Harding, chief people and corporate officer at Dobbies Garden Centres, is to become its chair next spring. She will succeed John Brodie, who has served in the position since January 2018. Harding is a member of the Scottish Government’s Retail Industry Leadership Group and joined SRC’s board in early 2021. She will be the first female chair of the organisation since it formed in 1999 and will work with the 14-person board to champion the retail industry.
https://www.insider.co.uk/news/scotland-stands-out-september-footfall-31113332