The latest Nations and Regions Tracker from the British Business Bank shows that use of external finance by smaller businesses in the South West held up in 2024, with signs of optimism also growing.
The Bank’s flagship regional finance publication showed a one percentage point increase to 46% in the South West compared with 2023. This compares with the UK as a whole which saw a modest fall of one percentage point to 45% in the number of smaller businesses using external finance. The Bank said this reflected stabilisation after the sharp 10 percentage point increase recorded in 2023, following a post-covid slump the year before.
Key highlights:
- External finance use held up in the South West in 2024, rising by one percentage point compared with a one point drop nationally.
- Credit cards remain the leading external finance type, with South West businesses also favouring overdrafts.
- Businesses in the South West are more optimistic than most regions, but perceived threats still outweigh opportunities
- Equity investment declined in 2024, although the South West remained in line with the average on intensity of deals per 100 high growth enterprises
The report shows that the type of finance used also remained stable from 2023 to 2024, with small UK wide declines of two percentage points for grants, overdrafts, and credit cards. Credit cards remain the leading type of external finance favoured by the UK’s small businesses with an average usage rate of 15%, including in the South West. Businesses in the South West also show greater preference for overdrafts, with 14% of smaller businesses reporting using them, second only to the North West on 15% and compared with a national average of 11%. Leasing, hire purchase and vehicle finance, ranked the third most popular type of finance at 10% nationally.
Read the full South West press notice here.
