The average loan size in Scotland was also approximately £1,000 higher than the UK average, suggesting that start-ups and early-stage businesses needing financing in Scotland were potentially bigger. 

43% of the Start Up Loans provided in Scotland during 2025 went to female founders, versus a national average of 39%, which in turn compares to a finding in 2024 that around 14% of SME employers were women-led.

The demand for Start Up Loans runs counter to some other findings around business confidence. The British Chambers of Commerce found in their latest survey that confidence among businesses has fallen, with only 46% of responding firms expecting an increase in turnover (compared with 48% in Q3), meaning it is at its lowest level in three years. Furthermore, the Lloyds November Business Barometer found that business confidence fell in November by eight points to 42%.

Louise McCoy, managing director of Start Up Loans Products at the British Business Bank, said: “Despite a mixed picture when it comes to business confidence data, in our Start Up Loans drawdowns data we still see a picture of year-on-year demand holding up in Scotland.

“December and January is a period when many people have the time and motivation to explore setting up their own business and change direction. We have already seen December 2025 delivered a much higher volume of loans than December 2024. 

“With demand for small business finance from Start Up Loans ticking up, we look forward to supporting more entrepreneurs in Scotland throughout 2026.”

January is traditionally a time when small businesses look to start up or look for external finance. Start Up Loans has found that the period between Christmas and New Year was a time many aspiring entrepreneurs decided to find out more about setting up a business. 

For business guidance from Start Up Loans visit https://www.startuploans.co.uk/support-and-guidance/business-guidance, or to learn more about becoming self-employed see the Fresh Start Guide.

The Start-Up Loans Company is a wholly owned subsidiary of British Business Bank. It provides personal loans for business purposes of up to £25,000 per partner or owner in a business and to a maximum of £100,000 for a business.