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Supporting business potential through financial data

Date

Fingers on a computer keyboard with a semi-transparent overlay of a bar chart and Excel sheet

High technology and knowledge-intensive companies present significant potential for the UK economy, but can be hindered by equity funding models that fail to provide sufficient funding.

Companies in growth sectors such as creative industries, life sciences, financial technology, digital, artificial intelligence (AI) and clean energy need investment for long periods to innovate and scale up.

Professor Wilson and Dr Marek Kacer at the Credit Management Research Centre (CMRC) analysed funding gaps and the outcomes of government loans to inform future funding allocation and policies across the UK, and ensure that companies in growth sectors have support to reach their potential.

Impact

  • Economic impact: supported £10 billion funding to regional investment funds
  • Civic engagement: gave evidence to support policy interventions, including the Business Interruption Loan Schemes.

Key information

  • Major funders: UK Research and Innovation quality-related (QR) funding, Innovate UK
  • Partners and collaborators: UK Government
  • Disciplines: business, economics, data
  • Investigators: Professor Nick Wilson, Dr Marek Kacer.

In early 2020, UK Research and Innovation QR funding supported Professor Wilson and Dr Marek Kacer to build databases and estimate the scale of the funding gaps by sector and region.

The government used these estimates to allocate £10 billion to regional investment funds, including the Northern Powerhouse and Midlands Engine funds – enabling optimal allocation of public funds to support entrepreneurship and small business growth.

Their work also fed into more equity finance stimulus proposed in The Mansion House pension reforms, and the Credit Management Research Centre (CMRC) team’s work on this policy intervention was cited in the 2023 Autumn Statement.

During the COVID-19 lockdowns in 2020, Professor Wilson worked with the government on monitoring policy interventions, including the Business Interruption Loan Schemes. The team continues to analyse outcomes of government-backed loans and grants to inform future policy recommendations.

The QR funding allowed researchers to access further funding from UK Research and Innovation (UKRI), Innovate UK and other UK Government funding.