‘If you miss out on securing external funding, you could risk losing your competitive edge,’ says expert
The finance and insurance sector saw a £10m boost in government investment over the last year, according to research from business loans firm Money.co.uk.
That took total investment levels in the industry – with funding deriving from either the enterprise investment scheme (EIS) or seed enterprise investment scheme (SEIS) – to £121m in 2023/24, up from £111m in 2022/23.
It also meant the finance and insurance industry saw the second highest increase in investment across all sectors, behind only transport and storage.
The increased investment comes amid a push for growth led by the department for business trade and the British Business Bank, with £6.6bn earmarked to boost British business as part of the UK’s new industrial strategy.
Growth driver
Joe Phelan, business finance editor at Money.co.uk, said: “The key driver of growth is capital. If you miss out on securing external funding, you could risk losing your competitive edge. Securing financial aid can be the boost your business needs to succeed in your chosen industry.
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“For example, securing financial aid allows your business to scale up faster than relying on company cash flow. You can hire extra staff, invest in equipment, or take on more projects, which could allow you to seize opportunities in new markets.
“In addition, access to funding at the beginning of your business journey doesn’t just support your current operations, it provides the freedom to innovate. With financial aid in place, you can invest in research and development and explore new technologies. Whether building a more sustainable process or introducing a new product to market, funding can help bring your best ideas to life faster.”
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