Demand for start-up finance in Wales is the highest in the UK
The British Business Bank’s Start Up Loans programme saw an almost 30% (28.9%) rise in loan volumes in 2025 compared to the previous calendar year, suggesting a continued entrepreneurial drive across Wales.
This increase was also reflected in the total value of loans, which rose by 23.58% between 2024 and 2025, indicating both sustained demand and continued investment in new and early-stage businesses.
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.
The 2025 calendar year also saw demand for Start Up Loans remain broadly consistent in each quarter.
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 Chambers of Commerce found in their 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 not just holding up in Wales, but really increasing noticeably.
“We look forward to supporting more entrepreneurs in Wales throughout 2026.”
January is traditionally a time when small businesses look to start up or look for external finance. Start Up Loans has found that the period between Christmas and New Year was a time many aspiring entrepreneurs used 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 we have produced information and support in our Fresh Start Guide.
The Start-Up Loans Company is a wholly-owned subsidiary of British Business Bank. It provides personal loans for business purposes of up to £25,000 per partner or owner in a