ERC research undertaken by Mark Hart & Karen Bonner contributed to the Enterprise Finance Guarantee (EFG) Scheme – Strategic and Operational Design Review published April 20th 2016 by the British Business Bank.
The ERC contribution (Annex B – page 34/35) covers the Economic Impact of EFG. Monitoring data covering all businesses in receipt of EFG between 2009 and mid-February 2014 and also those in receipt of its predecessor, the Small Firms Loan Guarantee (SFLG) was matched to the Business Structure Database (BSD) and analysed by the Enterprise Research Centre (ERC).
Key findings include
EFG recipients add employees faster than non-recipients
The economic impact of an EFG loan seems to be related to age.
Businesses who are two years old have the best employment and turnover growth outcomes compared to businesses who are born in the year of the loan being drawn or older businesses.
Read the full report here.