Business Enterprise Fund injects £50m Start Up Loan funding to fuel SME growth across the North
Business Enterprise Fund – a Business Support Partner (BSP) for the British Business Bank’s Start Up Loans programme – has provided Northern businesses with over 4,500 loans through the programme, totalling more than £50m.
Through Start Up Loans, Business Enterprise Fund has supported the founders of smaller businesses across a range of sectors and locations, with female-founded businesses receiving 37% of loans. Business owners from an Ethnic Minority background made up 14% of loans and young entrepreneurs aged 18-24 received 8% of loans.
Start Up Loans provides personal loans for business purposes, which means each director can secure up to £25,000 worth of funding, up to a maximum of £100,000 per business.
Smaller businesses that Business Enterprise Fund has supported through the Start Up Loans programme include North East-based motorsports business, JPC Specialist Motorsports, which received a £20,000 Start Up Loan. JPC’s founder, Paul Connaughton, was named the British Business Bank’s North East Start Up Loan Ambassador for 2024-25.
Other smaller businesses include Wigan-based premier wig production company, Xtra9ce Wigs, which secured a £25,000 Start Up Loan to move to a larger premises and support further growth plans. Leeds-based Yorkshire Mushroom Emporium received a total of £50,000 worth of funding to scale up and grow.
Stephen Waud, CEO at Business Enterprise Fund, said: “I’m so proud of Business Enterprise Fund’s achievement, providing £50m to smaller businesses through the Start Up Loans programme. This crucial funding has a huge impact on people and businesses across the whole country, and we’re really lucky to get to meet and work with these people day-to-day, supporting their ambitions and helping them achieve their dreams. We look forward to continuing this work, providing accessible funding to the smaller business community.”
Louise McCoy, managing director, Start Up Loans Products, British Business Bank said: “The Start Up Loans programme is crucial in supporting new and early-stage businesses. It helps to propel business growth and prosperity around the country, and it’s amazing to see Business Enterprise Fund achieving this significant milestone. Smaller businesses are £50m better off thanks to the Business Enterprise Fund team, as they provide access to finance in the early stages of a business’ journey.”
Yorkshire Mushroom Emporium, Leeds-based Start Up Loan recipient
Yorkshire Mushroom Emporium is a Leeds-based urban mushroom farm dedicated to sustainable food production and reconnecting people with where their food comes from. Founded in 2021 by five friends passionate about growing food, the business began in a garage and has since expanded into a fully equipped growing facility. The business is now run by Niall Johnston and Ed Elcock.
Yorkshire Mushroom Emporium supplies fresh gourmet mushrooms to restaurants, greengrocers and cafés across West Yorkshire. Alongside business-to-business sales, it offers mushroom-growing kits for use at home, which are available via the Yorkshire Mushroom Emporium website, Etsy, and selected retailers. These are particularly popular during the Christmas period.
Committed to education and community engagement, Yorkshire Mushroom Emporium launched hands-on workshops and foraging experiences in 2024, which were run locally around Leeds. These sessions teach participants about wild mushrooms, sustainable food systems, and include interactive tastings.
With Start Up Loans funding support from the Business Enterprise Fund, Yorkshire Mushroom Emporium has scaled up its production, invested in an autoclave – a specialist piece of kit that produces sterile substrate to make starter culture, reducing Yorkshire Mushroom Emporium’s overheads. The funding also enabled Niall and Ed to go full time within the business, allowing them to dedicate time to supporting its overall growth.
With ambitious growth plans, Yorkshire Mushroom Emporium aims to reach maximum production capacity, expand its educational offerings, and explore broader food-growing projects—all while maintaining a strong focus on sustainability and local food networks.
Niall Johnston, co-founder and managing director of Yorkshire Mushroom Emporium, said: “The Start Up Loans we secured from Business Enterprise Fund have been super important in supporting YME’s growth. Without it, we’d have struggled to buy our autoclave, which ultimately saves us money and allows us to develop part of our product in house, rather than having to buy this elsewhere. I’d encourage anyone thinking of setting up a business to reach out to Business Enterprise Fund and enquire about a Start Up Loan – it could be the start of an amazing adventure like it has been for us!”
Businesses can access Start Up Loans ranging from £500 to £25,000, along with mentoring support by visiting https://www.befund.org.
As an official Business Support Partner for the Start Up Loan programme, Business Enterprise Fund operates within a network of Business Support Partners, delivering Start Up Loans in the range of £500 to £25,000 across the UK.