Established businesses are being overlooked by policymakers and lenders despite accounting for more than a third of UK private sector employment and turnover, according to a new report from Allica Bank and Oxford Economics.
The report highlights the growing importance of businesses employing between five and 250 people, describing them as a critical but often underappreciated driver of economic growth, job creation and regional prosperity.
According to the research, established businesses account for 35% of private sector employment and 37% of turnover across the UK, with their importance even greater outside London and the south east.
In Wales they account for 44% of private sector employment, while in Scotland the figure stands at 39%. In rural areas, established businesses support one in every two private sector jobs.
FINANCE BARRIERS
Despite their economic contribution, the report warns that many continue to face significant barriers when seeking finance, with Allica estimating a cumulative SME lending gap of £65bn built up over the past 25 years.
The report found that lending provided by Allica Bank enabled an estimated £8.4bn contribution to UK GDP during 2025, supported 118,000 jobs and generated £2.1bn in tax revenues.
According to the analysis, every £1m lent by the bank supported an estimated £2.6m contribution to GDP, 36 jobs and £700,000 in tax revenues.
Importantly, 78% of the GDP impact and 80% of employment supported by Allica’s lending occurred outside London and the south east, highlighting the significance of access to finance in regional economies.
BIG IMPACT
Richard Davies (main picture, inset), CEO of Allica Bank, says: “Established businesses are one of the UK’s most important but underappreciated sources of growth. They make up a small share of the business population, but account for more than a third of private sector employment and turnover.
“But too many are still being held back by being overlooked – whether that’s by banks, policymakers, or in the public discourse more generally. This report shows what happens when established businesses are given the support they need.
FUNDING GROWTH
He adds: “At Allica, we’re seeing our lending increasingly concentrated in high-growth established businesses that are turning finance into real economic impact. The GDP contribution enabled by our lending grew by 44% last year, ahead of lending growth of 35%.
“If the UK is serious about growth, it needs to get serious about backing established businesses. Because when established businesses grow, the whole economy grows with them.”
The report comes as regulators, government departments and industry bodies continue examining ways to improve SME access to finance, with specialist lenders increasingly positioned as a key source of funding for growth-focused businesses seeking flexible capital and faster decision-making.
CASE STUDY: SD WIND ENERGY
Toshiro Urushitani, CEO of SD Wind Energy, says: “SD Wind Energy has been based in Ayrshire for decades, and we’re proud to be growing from here while exporting our turbines around the world. Demand from international customers has been rising, particularly in North America, and this investment has helped us expand our Stewarton site, increase production capacity and keep developing new renewable energy technologies.
“For a business like ours, access to the right finance at the right time makes a real difference. It means we can invest in the future, create skilled jobs locally and grow internationally while keeping our roots firmly in Ayrshire.”
CASE STUDY: DALES BIKE CENTRE
Another business featured in the report is Dales Bike Centre, a family-run business based in the Yorkshire Dales, secured funding from Allica Bank last year to open glamping accommodation alongside its ride, eat and stay experiences.
Owned and run by husband-and-wife team Stu and Brenda Price, the centre has been part of the Swaledale community since 2009, employing staff from around ten local families.
Stu Price, co-owner of Dales Bike Centre alongside his wife Brenda, say: “Established businesses like ours are often built over many years, rooted in their communities and doing much more than just serving customers. We employ local people, work with local suppliers and help bring visitors into the Yorkshire Dales, but that doesn’t always fit neatly into the way traditional banks look at lending.
“What made the difference with Allica Bank and the help of our relationship manager Andy Castle was that they took the time to understand what we’re building here. This has been our first full summer with the new glamping pods and they’re already hitting our forecast turnover target, helping secure our future and all the benefits this business brings to a rural community.”
“For a family-run business like ours, access to the right finance is what turns ambition into action.”
