While the COVID-19 outbreak continues to spark uncertainty throughout the economy, a growing number of ambitious entrepreneurs are using the pandemic as a unique opportunity to design, build, and develop their own businesses from the ground up.
Following a worrying period of job losses, the number of new businesses being registered with Companies House is understood to have experienced a 50% year-on-year increase, with many new start-ups securing essential funding through SME finance expert, BizBritain.
A UK-based commercial finance broker, BizBritain has secured funding totalling more than £30 million since the service was first launched in 2012, with an estimated £6 million being distributed over the past 6 months alone during the country’s COVID-19 lockdown. Companies House data suggests that while the number of new businesses initially dropped through March, April, and May, start-up registrations grew to a whopping 77,574 in June 2020, up from 52,779 the year before; a notable 47% increase in new business registrations.
BizBritain is supporting these new SMEs as they work to identify and secure the most suitable and affordable funding options for their ventures. A prime example is that of James and David Hennessy, who both lost their jobs as a direct result of the pandemic. With support from BizBritain, the Hennessy’s launched commercial flooring company Hennessy Flooring in June. BizBritain-secured a working capital loan that enabled Hennessy Flooring to more effectively handle the unprecedented number of orders that came flying in.
“While it is certainly very good news – both for the economy and for people themselves – that those in challenging situations are using a very difficult and uncertain period as a driver of innovation, and as a chance to transform passion into livelihood, the harsh truth is that early stage start-ups have been finding it notoriously difficult to secure the funding they need during lockdown,” says award-winning entrepreneur, Matt Gubba, Founder of BizBritain. “Our mission is to support and encourage entrepreneurs to grow and develop during this time by making the world of SME funding clearer, more transparent, and easier to navigate through our small business services.”
Joint research by co-working space Plexal and business database Beauhurst highlights just how challenging it is for new businesses to secure funding at this difficult time. The recent report suggests that £663 million in business funding was raised in total between March and April, yet just £50 million of this was distributed to startups. With a dedicated focus on SMEs and new startups, BizBritain aims to even the playing field, and create more opportunities for the pandemic’s entrepreneurs to thrive and succeed in a post-COVID economy.
Regulated and fully authorised by the Financial Conduct Authority (FCA), BizBritain works to match small businesses with the best finding providers for their needs, with specialist funding ranging from £10,000 up to £5 million. With a hand-picked team of expert business advisors, BizBritain has become the go to support network helping entrepreneurs to move forward with confidence.