Commentary and practical insight on the funding challenges facing UK startups, small businesses and not-for-profits.
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31 articles
Nigel Farren••8 min read
The UK Shared Prosperity Fund: End of an Era — What It Achieved, Where It Failed, and What Comes Next
A Fundability Reflection | March 2026 Introduction This month marks the end of the UK Shared Prosperity Fund (UKSPF) — one of the most ambitious, frustrating, and ultimately unfinished experiments in post-Brexit regional funding policy. Launched as the domestic replacement for European Structural and Investment Funds, the UKSPF aimed to build pride in place and increase life chances across the UK, becoming a central pillar of the previous government's Levelling Up agenda. As it closes its...
Business and Trade Committee appointed by UK Parliament ignores the SME Funding Crisis
In July 2025, the UK's Department for Business and Trade published it's Strategy setting out a long-term plan for government support for small and medium-sized businesses (SMEs). On February 11th 2026, The Business and Trade Committee published it's response correctly identifying a range of cost pressures - including rising National Insurance contributions, energy costs, business rates, and late payments - that are placing enormous strain on SMEs across the country. However, the Committee...
SME Funding Crisis - Part 4: The Investment Desert
The investment landscape in the UK presents a brutal reality for aspiring entrepreneurs. With rejection rates by both VC and Angel investors exceeding 90%, 000s SMEs are turned away from equity investment each year. This staggering rejection rate represents more than just rejected applications—it represents innovation stifled, jobs not created, and economic potential squandered. The reasons behind these astronomical rejection rates are multifaceted and most SMEs, particularly those seeking...
SME Funding Crisis - Part 3: The Grant Mirage: Why Public Funding Offers False Hope
Government and institutional grants are often touted as a lifeline for growing startups and SMEs unable to secure loans or investment. The reality is far less encouraging. With rejection rates around 90%, grant funding represents more mirage than oasis for desperate businesses seeking funding. The main provider of innovation grants – Innovate UK – has been in turmoil for over 2 years. The number of grants available has halved. The Smart grant was suspended in 2025 and outrage arose over the...
The SME Funding Crisis - Part 2: How Banks Betray Job-Creating SMEs
1 in 2 Loan applications are rejected This 50% rejection rate represents a dramatic decline from the 80% success rate recorded in 2018 and highlights a growing crisis in SME access to finance. Businesses need funding most when they're starting and growing, precisely when banks refuse to provide it and this is typified by Government's failure to provide sufficient funding to the British Business Bank. The bank is wholly owned and funded by the UK government, specifically through the...
The SME Funding Crisis - Part 1: Breaking Point for Economic Growth
Small and medium-sized enterprises (SMEs) are the backbone of the UK economy, comprising 99.9% of all businesses, employing roughly 16.9 million people (60% of the private sector workforce), and generating approximately £2.8 trillion in turnover (52% of GDP) as of 2025. They drive regional growth, innovation, and competitiveness, with potential to add billions more in annual investment. Yet despite their critical importance, SMEs face an unprecedented funding crisis that threatens not only...
Do You Have What It Takes to Start and Build a Business?
Over the last 40 years I’ve met thousands of people considering starting a business, and I’m consistently struck by how many begin the journey in the same way. Many reach a breaking point — frustration with employment, redundancy, or dissatisfaction with their current role — and conclude: “I have a great idea, I’ll go for it.” And for most, emotion and impulse lead, rather than structured, rational assessment. Few pause to evaluate whether they truly have the ability to build a business, or...
Financial projections: Turning numbers into credible business thinking
Financial projections have an image problem, and most founders give them low priority. They feel like guesswork – spreadsheets built to satisfy lenders or investors, not tools that are crucial in helping run the business. To lenders and investors, poorly constructed projections confirm a different fear: that the founding team doesn't understand the logic of what they're building. In reality, financial projections are neither fiction nor fortune-telling. At their best, they're structured...
Create a Winning Pitch Deck Presentation: The Importance of Pitch Decks
When you’re preparing to raise investment, your pitch deck is your most powerful tool. It’s not just a collection of slides; it’s your story, your vision, and your business plan all wrapped into one compelling presentation. However, most business owners really struggle with this crucial step as evidenced by over 90% of decks being rejected. Most are poor quality and end up being viewed for less than a minute. For example, they contain too many slides, vital information is missing or...
Securing Investment for Your Startup: Proven Startup Funding Strategies
Starting a business is exciting, but securing the right investment can be daunting. I’ve been there many times, and I know how crucial it is to get your funding right from the start. Without adequate capital, even the best ideas struggle to take off. That’s why understanding effective startup funding strategies is essential. In this post, I’ll walk you through practical steps and insights to help you attract the investment your business needs. Understanding Startup Funding Strategies Before...
Creating Effective investment and Loan Applications
When you’re preparing to apply for investment or a business loan, the most critical document you’ll need is a well-crafted business plan and finacial projections. It’s not just a formality. A strong business plan can make the difference between approval and rejection. It shows investors and lenders you understand your business, your market, and your financial needs. It also demonstrates your ability to deliver. It also informs your pitch deck for investment. Writing a business plan requires...
Securing funding is a critical step for any business aiming to grow and thrive. But how do investors and lenders decide which startups or SMEs are worth backing? The answer lies in the fundability assessment process. This evaluates a business’s readiness to obtain investment and/or loans , ensuring it meets the criteria investors expect. Understanding this process can significantly improve your chances of success. What Is the Fundability Assessment Process? The fundability assessment process...
Securing funding is a critical step for any business aiming to grow and thrive. But beyond just having a great idea or product, the key lies in building strong, lasting relationships with not just funders but also suppliers and partners. These connections can open doors, provide valuable insights, and ultimately help you secure the capital you need. In this post, I will share practical strategies to help you connect with investors and navigate the funding landscape with confidence. Why It’s...
Launching a new business starts with a spark - an idea. But not every idea is destined for success. Before investing time, money, and energy, it’s crucial to validate new business ideas thoroughly. This process helps you understand if your concept has real potential in the market. It reduces risks and increases your chances of securing funding and growing sustainably. In this post, I’ll walk you through clear, actionable steps to validate your business idea effectively. Whether you just have...
Why Sending Your Pitch Deck First Is the Wrong Way to Seek Investment
Most early-stage startups believe that raising investment starts with crafting a sleek pitch deck and sending it to potential investors. It’s an understandable assumption—after all, decks are what investors ask for and see, first. But here’s the hard truth: this approach is why over 90% of startup funding applications get rejected. The reality is that fundraising doesn’t begin with pitching—it begins with understanding your own business, inside out . Before you ever show your idea to an...
