Established businesses hold key to UK growth but are being overlooked
A new report published today by Oxford Economics reveals the critical role established businesses play in driving UK economic growth, employment and regional prosperity.
Commissioned by Allica Bank, the bank built especially for established businesses, the report finds that firms with between five and 250 employees contribute 35% of private sector employment and 37% of turnover.
Established businesses are what’s known as the ‘real economy’: the manufacturers, logistics firms, care providers, hospitality businesses and service companies that employ people locally and keep regional economies moving.
Their importance is felt most outside London. Established businesses account for 44% of private sector employment in Wales, 39% in Scotland, 39% in the South West and 38% in the North East and North West – all well above the UK average of 35%. In London, the figure is just 30%. They also support one in every two private sector jobs in rural areas.
These findings underline the importance of backing these businesses at a time when regional growth is high on the political and economic agenda.
Fig. 1 Established businesses’ share of total employment across the UK’s regions in 2025 (Source: Oxford Economics)
However, the report also highlights the challenge many established businesses face in accessing the finance they need to invest and grow. It points to research from Allica Bank that revealed a £65bn SME lending gap, accumulated over the past 25 years, which is restricting the finance and working capital available to businesses that want to expand, boost productivity and create jobs.
Oxford Economics also detail the impact that can be unlocked when established businesses get access to the finance they need. In 2025, Allica Bank’s lending to established businesses enabled an estimated £8.4bn contribution to UK GDP, supported 118,000 jobs and generated £2.1bn in tax revenues.
That means every £1m lent by Allica Bank enabled an estimated £2.6m contribution to UK GDP, supported 36 jobs and generated £0.7m in tax revenues.
The impact is also being felt across the country. Some 78% of the GDP contribution and 80% of the employment impact supported by Allica Bank’s lending occurred outside London and the South East.
Fig. 2 Total employment enabled by Allica Bank’s lending in each region in 2025, (Source: Oxford Economics)
Richard Davies, CEO of Allica Bank, said: “Established businesses are one of the UK’s most important but underappreciated sources of growth. They make up a small share of the business population, but account for more than a third of private sector employment and turnover.
“But too many are still being held back by being overlooked – whether that’s by banks, policymakers, or in the public discourse more generally. This report shows what happens when established businesses are given the support they need.
“At Allica, we’re seeing our lending increasingly concentrated in high-growth established businesses that are turning finance into real economic impact. The GDP contribution enabled by our lending grew by 44% last year, ahead of lending growth of 35%. That matters, because when these businesses grow, the benefits are felt far beyond the business itself – in local jobs, stronger supply chains and more resilient communities across the UK.
If the UK is serious about growth, it needs to get serious about backing established businesses. Because when established businesses grow, the whole economy grows with them.”
The report highlights examples of established businesses using finance to invest, expand and create jobs across the UK.
In Ayrshire, SD Wind Energy used funding from Allica Bank to expand and upgrade its Stewarton site, increasing production capacity and supporting the development of new renewable energy technologies. Founded in 1980, the business has installed more than 8,500 turbines in over 70 countries, from the shores of the Clyde to Antarctica.
Toshiro Urushitani, CEO of SD Wind Energy, said: “SD Wind Energy has been based in Ayrshire for decades, and we’re proud to be growing from here while exporting our turbines around the world. Demand from international customers has been rising, particularly in North America, and this investment has helped us expand our Stewarton site, increase production capacity and keep developing new renewable energy technologies.
“For a business like ours, access to the right finance at the right time makes a real difference. It means we can invest in the future, create skilled jobs locally and grow internationally while keeping our roots firmly in Ayrshire.”
Another business featured in the report is Dales Bike Centre, a family-run business based in the Yorkshire Dales, secured funding from Allica Bank last year to open glamping accommodation alongside its ride, eat and stay experiences. Owned and run by husband-and-wife team Stu and Brenda Price, the centre has been part of the Swaledale community since 2009, employing staff from around ten local families.
Stu Price, co-owner of Dales Bike Centre alongside his wife Brenda, said: “Established businesses like ours are often built over many years, rooted in their communities and doing much more than just serving customers. We employ local people, work with local suppliers and help bring visitors into the Yorkshire Dales, but that doesn’t always fit neatly into the way traditional banks look at lending.
“What made the difference with Allica Bank and the help of our relationship manager Andy Castle was that they took the time to understand what we’re building here. This has been our first full summer with the new glamping pods and they’re already hitting our forecast turnover target, helping secure our future and all the benefits this business brings to a rural community.”
“For a family-run business like ours, access to the right finance is what turns ambition into action.”