West Midlands small businesses get £277m investment – report

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According to a recently published study, small businesses in the West Midlands are showing strong signs of recovery and a renewed appetite for growth.

Equity investment in small businesses in the West Midlands reached £277m at the end of the third quarter of 2021 in 46 deals.

This is an increase of 18% compared to the number of equity transactions concluded during the same period in 2020, according to new figures revealed by the eighth annual report 2021/22 on the small business finance market. businesses of the British Business Bank.

However, the West Midlands saw a 25% decline in investment value. Nationally, equity investment in small businesses surged in 2021, with numbers on track to double, with a quarter of the data still to go.

Demand for finance in the West Midlands remains robust, with 32% of small businesses surveyed saying they would be happy to use finance to grow.



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On the supply side, 2021 has seen steady growth in the region’s local venture capital sector, with 21 unique investors involved in venture capital now present in the region.

Sophie Dale-Black, Director of the Midlands UK Network at the British Business Bank, said: “This report shows that after incredibly difficult economic times for small businesses, not only are we seeing the resilience of our region, but there is a obvious appetite for growth.

“External financing will continue to play a critical role. There is work to be done, removing regional barriers to accessing finance remains essential to improving economic opportunities, which we remain committed to addressing.”

Along with the growth in equity funding, the report says UK debt markets as a whole are returning to near pre-pandemic levels.

Challenger and specialist banks accounted for just over half of the bank lending market (51%) – a record share, up from 32% in 2020.

The amount of debt held by small businesses has increased significantly from pre-pandemic levels due to businesses’ access to government covid-19 emergency funding programs to help them survive.

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