The British Business Bank’s Start Up Loans programme provided more than 1,000 loans to start-ups across the South West in 2025, up 6.34% on the year before, when there were 946.
Figures just released show that new businesses in the region borrowed a total of £13.89m, a 12% increase on the £12.4m loaned in 2024, suggesting a continued entrepreneurial drive in the South West.
There were five local authority areas in the South West where businesses received more than £1m in total. These were: Cornwall (£1.6m); Somerset (£1.3m); Wiltshire (£1.3m); Bournemouth, Christchurch and Poole (£1.2m) and City of Bristol (£1.1m).
Across the UK as a whole, December was a particularly strong month, with the volume of loans up 12% in December 2025 compared to December 2024.
Nationally, loan volumes were up 9% and 39% of the Start Up Loans in 2025 went to female business founders, while 21% went to ethnic minority groups and 8% went to young Gen Z entrepreneurs aged between 18 and 24. All three groups traditionally struggle to access start-up business financing.
The 2025 calendar year also saw demand for Start Up Loans remain broadly consistent in each quarter.
Nationally, each quarter was as follows:
- January-March: 2,805 loans worth £35.92m
- April-June: 2,861 loans worth £36.93m
- July-September: 2,936 loans worth £36.18m
- October-December: 2,738 loans worth £34.08m
The demand for Start Up Loans runs counter to some other findings around business confidence. The British Chamber of Commerce found in its latest survey that confidence among businesses has fallen, with only 46% of responding firms expecting an increase in turnover (compared with 48% in Q3), meaning it is at its lowest level in three years. Furthermore, the Lloyds November Business Barometer found that business confidence fell in November by eight points to 42%.
Louise McCoy, Managing Director, Start Up Loans Products, British Business Bank said, “Despite a mixed picture when it comes to business confidence data, in our Start Up Loans drawdowns data we still see a picture of year-on-year demand for Start Up Loans growing across the South West.
“December and January is a period when many people have the time and motivation to explore setting up their own business and change direction. We have already seen that December 2025 delivered a much higher volume of loans than December 2024.
“With demand for small business finance from the Start Up Loans programme ticking up, we look forward to supporting more entrepreneurs in the South West throughout 2026.”
January is traditionally a time when small businesses look to start up or look for external finance, with aspiring entrepreneurs using the festive period to find out more about setting up a business.
For business guidance from Start Up Loans, please visit: https://www.startuploans.co.uk/support-and-guidance/business-guidance, or if you want to learn more about becoming self-employed, the British Business Bank has produced information and support in its Fresh Start Guide.
The Start-Up Loans Company is a wholly-owned subsidiary of British Business Bank.
Pictured above: Louise McCoy, Managing Director, Start Up Loans Products, British Business Bank
