A social enterprise which specialises in providing flexible finance has added £86m to the regional economy following an investment of £21.5m in small and medium businesses.
The Business Enterprise Fund (BEF), which has offices across Yorkshire, the Humber, Sunderland and Manchester, has launched its latest social impact report for April 2023 – March 2024. The report reveals that it has helped launch 599 UK businesses, completed 976 client deals and created or safeguarded 4,470 UK-wide jobs.
BEF is a delivery partner for the government’s Start Up Loans Programme and the Northern Powerhouse Investment Fund II’s Smaller Loans Fund via the British Business Bank.
At the end of 2023, BEF was the recipient of a £1m loan to further support businesses in the North East, from the Isenberg Charitable Foundation, part of Ceniarth; a private family office and foundation focused on funding market-based solutions benefiting underserved communities. As of March 2024, BEF had also secured substantial backing from Lloyds in conjunction with Better Society Capital to further aid entrepreneurs.
Simon Jackson, director of investments at BEF, said: “It’s known that 90% of CDFI (Community Development Financial Institutions) customers were first denied by another lender – and yet our social impact reveals the immensely positive impact these businesses have on their surrounding communities. That could be in terms of providing employment, collaboration or creating services and spaces that serve people’s needs.”
Stephen Waud, chief executive at BEF, said: “We’re incredibly proud to have dedicated nearly 12,000 hours of investor time in supporting these businesses; we’re in a fortunate position where we’re able to serve entrepreneurs and business owners where traditional or challenger banks simply can’t. Our priorities lie in helping women, minorities and those who struggle mainstream funding. We started in Bradford 20 years ago and we’re now working with the lowest 35% most deprived communities across the North of England. The proof is, if we support SMEs and micro-businesses in these areas, we’ll see true social and economic transformation.”
