Coventry, Shropshire and Wolverhampton local authorities received the most finance outside of Birmingham with £7.3m, £6m and £4.6m respectively. Birmingham accounted for more than £1 in every £5 lent under the programme in the West Midlands. Every local authority in the West Midlands received over £1m with the exception of North Warwickshire.
Most notably, one in four of the loans provided in the West Midlands were provided to founders of ethnic minorities and over 39% of loans were distributed to female business owners, further underscoring the Bank’s commitment to supporting underrepresented entrepreneurs in the UK.
The West Midlands is a hotbed for young entrepreneurs, with 17% of borrowers aged 18-24, and within this group 38% were not in education, employment or training (NEET). The average across the UK is 13%.
Gareth Thomas, Minister for Services, Small Business and Exports said: “This is an impressive milestone for the Start Up Loans programme, which has boosted thousands of entrepreneurs and local businesses, and will help drive economic growth in communities across the West Midlands.
“This government is determined to give small businesses, and in particular those from underrepresented groups, access to the finance they need to start up and scale up, and programmes like this are key to achieving that.”
Laura Suominen, 28, the founder of Ikigai, is one of these female founders to have benefited from the programme and was named as a regional ambassador in late 2024.
Her business, located in Leamington Spa, specialises in sourcing Japanese imported homeware items, yukata and otaku products such as official Studio Ghibli Merchandise.
Laura, who runs the business alongside her partner, took out a £12,000 loan in early 2024 via Start Up Loans’ Business Support Partner, BizBritain which helped her to develop a new website and further increase the inventory of items that are imported from Japan.
Laura Suominen, founder of Ikigai, commented: “The Start Up Loans programme has been a huge help in growing the business and supporting our ambition to bring Japanese culture and homeware to Leamington Spa. It has meant that we’ve gotten the business to a place that we wouldn’t have otherwise been able to do so and I’m keen to encourage others within the region to follow in my footsteps.”
Another business owner benefiting from access to finance provided by the Start Up Loans programme is the 23-year-old owner of The Scran Man Grill. Blake took out a £5,000 loan via The Prince’s Trust (now The King’s Trust), a partner of the Start Up Loans programme, in 2021. With the loan, Blake was able to set up a bricks and mortar location, moving from the portable van at his grandad’s house, which had earned him his reputation during lockdown. A year later he got a second loan of £12,000 to grow his business further.
The business, based in Great Barr near Birmingham, is dedicated to bringing customers authentic, fresh and tasty American street food such as Philly cheesesteaks, fried chicken and signature burgers to name a few of the menu items.
Louise McCoy, Managing Director, Start Up Loans Products at the British Business Bank, said: “The West Midlands is a region with a clear appetite for entrepreneurship and innovation, so we are proud to say that the Start Up Loans programme has now supported founders with £100m in funding since its inception in 2012.
“This milestone is a testament to the great work and partnerships that take place across the West Midlands, and we look forward to continuing our work to create a thriving business community in the region throughout 2025 and beyond.”
Daniel Carrico, Executive Director at First Enterprise, commented: “Reaching £100m in Start Up Loans across the West Midlands is a powerful milestone – one that reflects the ambition and resilience of thousands of entrepreneurs. At First Enterprise, we are proud to stand alongside the British Business Bank as a long-standing Business Support Partner, helping to turn aspirations into thriving businesses. We’ve seen first-hand how access to finance, mentoring, and guidance can empower individuals, especially for those who have been historically underrepresented or excluded from traditional funding routes.
“This achievement highlights the region’s entrepreneurial spirit and reinforces our commitment to supporting inclusive, sustainable growth across every community we serve.”
Since its inception, the Start Up Loans programme has delivered more than 120,000 loans to business owners across the UK, amounting to more than £1.2bn of funding. Of those loans, 40% of loan recipients have been women and 20% from Black, Asian, and Other Minority Ethnic backgrounds (not including White Minorities).
Start Up Loans is a subsidiary of the British Business Bank and delivers the Government’s Start Up Loans programme, providing first loans to businesses that have been trading for three years or less and second loans to businesses that have been trading for up to five years.
As an official Business Support Partner for the Start Up Loan programme, BizBritain and First Enterprise operate within a network of Business Support Partners, delivering Start Up Loans in the range of £500 to £25,000 across the UK.
