We were delighted to welcome Sally Jameson, MP for Doncaster Central, to the Finance For Enterprise office recently. She came to meet some of the Yorkshire entrepreneurs we’ve had the privilege of supporting as they grow their businesses.
Finance For Enterprise (FFE) is a Community Development Finance Institution (CDFI), a not-for-profit organisation dedicated to supporting viable businesses and individuals who can afford to repay a loan but may struggle to secure finance from traditional banks and other lenders. Earlier this year, FFE was one of three CDFIs to share a £62 million investment from the Community Investment Enterprise Fund, backed by Lloyds Bank.
During her recent visit, Sally Jameson, MP for Doncaster Central, was welcomed by FFE Managing Director Andrew Austwick. She also had the opportunity to meet Kevin Wheatley, founder of Doncaster-based AmbiSpace, along with Dominic Barnes and Kate Pawson of Huddersfield-based BioBax.
The discussions highlighted the entrepreneurs’ experiences running small businesses, explored the opportunities and challenges facing aspiring companies in Yorkshire, and underscored the vital role CDFIs play in enabling entrepreneurs from diverse backgrounds to thrive.
AmbiSpace, a specialist in sensory room design and installation, received £50,000 in funding from FFE to support business growth, relocation, and the purchase of new machinery. This investment has allowed the company to produce fibre optic carpets and light guides for clients both in the UK and overseas. Similarly, BioBax, a manufacturer of microbiological cleaning products, secured funding in June to scale up production of its innovative product range.
Sally Jameson, MP for South Doncaster, said: “Finance For Enterprise is giving small businesses the funding and confidence they need to thrive. CDFIs are a great example of how innovative approaches to funding can drive growth in local communities and I’m excited to see the impact Andrew and the team are having in Doncaster and across Yorkshire.”
Andrew Austwick, Managing Director, Finance For Enterprise, added: “A vibrant community of small businesses is the backbone of our local economy. The lending that we have provided for businesses has generated over £280m for the Yorkshire economy over the last five years.”
Mark Burton, Group ambassador for Yorkshire and the Humber at Lloyds, said: “It’s hard to overstate the contribution of small businesses to the economy. Here in Yorkshire, I see their vital role as employers and incubators for innovation every day. As one of the country’s leading financial organisations, it’s essential that we continue to support them, be that through direct lending or our support of CDFIs.”
Fun facts about CDFI’s
Enterprise lending– in 2023 CDFIs lent £102m (a 26% increase on 2022) to 4,546 small businesses and startups (41% more than in 2022), of which:
• They lent £42.2m to 3,725 start-ups (average loan size: £11,354) and £59.8m to 821 established SMEs (average loan size: £72,883)
• 99% of the businesses which borrowed from CDFIs in 2023 had previously been declined by another lender
• 98% of businesses supported were based outside London
• 60% of businesses supported were based in the UK’s 35% most disadvantaged areas
• 41% of CDFI business loans were made to women-led start-ups and businesses (just 16-21% of UK businesses overall are led by women)
• 24% of business loans were made to ethnic minority-led start-ups and businesses (only 6% of UK SMEs are ethnic minority led)
Women-led businesses and businesses led by people from ethnic-minorities are two to three times more likely to be rejected for finance compared to those led by male and by white business leaders. CDFIs lend disproportionately more to women-led businesses and to businesses led by individuals from Black, Asian and Minority Ethnic backgrounds compared to their representation in the overall business population.
CDFI lending to social enterprises in 2023:
• CDFIs and social banks lent £119m to 371 social enterprises
• 93% of social enterprises supported were based outside London
• 38% of social enterprises loans were made in the UK’s 35% most disadvantaged areas
• 47% of CDFI social enterprise loans were made to women-led social enterprises
