Five Years on Lockdown: The Start‑Up Boom
Five years after the first Covid‑19 lockdown, a wave of dreamers has poured into the UK’s entrepreneurial scene, grabbing loans and turning ideas into real‑world businesses. Start Up Loans data shows a clear, jaw‑dropping surge in fresh borrowers, especially in London.
London’s Loan Landscape
- 10% more first loans issued in London since the lockdown.
- That 10% jump translates to a £19.5 million increase in the total value of first loans – a tidy 25% rise.
- Loans climbed from 1,296 in 2020 to 1,943 in 2021 – a 50% jump that set a new standard.
- Since then, numbers have held above pre‑pandemic levels.
Lockdown as a Launchpad
When the world hit the brakes in early 2020, many people hit Pause on routine jobs and tapped into their inner ambitions. One standout story is Reia, a brand that cuts out single‑use plastic with refillable hand and body‑care products.
Co‑founders Celia Foot and Sophie Salisbury shared their story:
- “Lockdown gave us the chance to bring our idea to life. We had been researching how to eliminate single‑use plastic from the bathroom while working other jobs, and then lockdown gave us that moment of reflection and clarity, leading us to pursue Reia full‑time.”
- “Take‑took the loan in August 2020, and now we’re both employed by our company – that wouldn’t have been possible without the financing from Start Up Loans.”
Diversity Gains
The last five years have also seen a solid boost in loans to Black, Asian and Other Ethnic Minority (BAME) entrepreneurs.
- National loan share to BAME borrowers up by 5.39%, reaching 19.8%.
Who’s Borrowing?
The age spread is telling:
- 10.55% 18‑25 years old – the young guns.
- 12.22% 50+ years old – seasoned pros.
- Dominant group: 31‑49 years old, holding 56% of the loans.
Interestingly, the age profile has stayed steady before and after the pandemic, meaning the “brain‑storm‑upon‑lockdown” effect didn’t just braid in younger dreamers.
Why Lockdown Changed the Game
Richard Bearman, Co‑Chief Banking Officer at the British Business Bank, notes:
- “When I think of the Start Up Loans program, the pandemic was a real pivot moment.”
- “Many owners tell me their start‑up story began with ‘Lockdown gave me the space to stop and really think about what I wanted to do and achieve.’”
- “We saw a huge spike in 2020 and early 2021. Even though demand cooled slightly, people are still racing to secure Start Up Loans to turn their ideas into reality.”
So if you’re still dreaming of your next venture, the boot on your shoes isn’t just a metaphor: It’s a tangible, backed‑by‑government loan that could see your startup sprinting into the sunrise.
Keep your eyes on the next heartbeat of entrepreneurship – the next loan is just a page away. Get real‑time updates on this post category directly on your device, subscribe now!
