According to a recent KPMG survey, 92% of smaller businesses (SMEs) are confident about the outlook for their companies over the coming year, which seems surprising given some wider reporting, while another recent report has highlighted that revenues at listed insolvency companies are rising.

Regardless of what the year holds, at Start Up Loans we’re determined to help and to champion smaller businesses, helping them succeed. This is why we were so pleased by the findings of a recent independent evaluation of the Start Up Loans programme, showing we’re doing just that.

One of the key findings of the evaluation is that the businesses we support not only enjoy a longer lifespan but also demonstrate more robust growth and generate new employment opportunities across the UK.

A guiding principle of Start Up Loans is to deliver finance to those aspiring entrepreneurs that may otherwise struggle to access funding. Based on feedback from 804 entrepreneurs who received loans in the 2018/19 and 2021/22 cohorts, our evaluation estimated that approximately 68% of the funding offered through Start Up Loans would not have been accessible through traditional financing avenues. This data validates our mission, demonstrating that we are effectively bridging a critical funding gap and offering essential support to UK startups and entrepreneurs, particularly those who may be underserved currently.

Starting a business, of course, carries risk and success is not guaranteed. The independent evaluation, however, captured the resilience of the startups we support: a survival rate of 69% after five years. This is considerably higher than the 43% observed among other new businesses. This robust figure underscores our belief in the potential of these ventures when given the right support.

Beyond survival, these businesses we’ve supported have a positive impact on the UK economy. The evaluation noted that for every pound of Start Up Loans programme costs, between £5.50 and £5.60 of Gross Value Added (GVA) is generated for the UK economy. This is a clear indication of how strategic support to startups can contribute significantly to the nation’s financial health.

Entrepreneurs who have taken advantage of our loans are not just building businesses – they’re creating employment. Our impact assessment shows that on average each loan facilitated the creation of over one additional employee job. With over 100,000 loans delivered, nearly a quarter of a million (237,356) jobs are estimated to have been created since 2012. This figure underlines the fact that the benefits of small business entrepreneurship feed through to the wider economy.

Aside from the numbers, we take pride in the success stories of Start Up Loans recipients, such as PJ Farr’s journey with UK Connect. Armed Forces veteran PJ founded UK Connect with the support of a Start Up Loan in 2014 which now employs 60 full-time employees. His experience demonstrates the heights a business can reach with the right foundational support—transitioning from a startup to a formidable player in the telecommunications industry, with a turnover of more than £8m.

When asked about his Start Up Loan, PJ said: “As one of the inaugural recipients of an X-Forces Start Up Loan, this invaluable opportunity not only furnished us with essential capital at an attractive rate but, more importantly, connected us with exceptional mentors like Ren and Martin, and their dedicated team. The supportive community we encountered has been instrumental in our journey to success.”

At Start Up Loans we are committed to ensuring entrepreneurs from all demographics are able to access the capital they need to take the leap into starting their own business. Our dedication to ensuring inclusivity in business ownership is reflected in the proportion of women and ethnic minority entrepreneurs who receive loans from the programme. With female founders accounting for 41% of our loan recipients, double the representation seen in the wider ecosystem, and ethnic minority entrepreneurs making up 18%, in comparison to 4% of the general businesses population, we are committed to creating a more diverse and equitable business landscape.

The results of this evaluation do not just inform us of past successes; they serve as a mandate for the future, guiding us to continue providing pivotal support to the nation’s startups. We are eager to build on these achievements in 2025, empowering new cohorts of entrepreneurs and witnessing their contributions to a diverse and strong UK economy. With more of this kind of support, perhaps 2025 can indeed be the year of the small business.