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Recent figures suggest that the Midlands has become the UK’s most entrepreneurial region outside of Greater London.
Data from the Start-Up Loans Company (SULCo) a Government-backed scheme launched six years ago as a route to finance for many new businesses shows that over that time it has lent over £57 million to small businesses in the Midlands, split as £22million to the East Midlands and £35million to the West Midlands.
Some 8,079 business in the Midlands – and well over 55,000 across the UK – have received low-interest loans, with the average loan size in the Midlands totalling £14,032.
The Midlands was beaten only by London as the most entrepreneurial city in the UK. According to the figures, SULCo lent more than £100 million to a total of 14,000 businesses in Greater London.
Lauren Taylor was inspired to set up her own business – Kokoso Baby – after she struggled to find an effective, natural cream to treat her newborn baby’s dry skin. After a long search, she discovered raw virgin organic coconut oil and quickly became passionate about its many skincare benefits and uses.
With the help of a £10,000 low-interest loan from SULCo, she and her husband set about creating a range of premium organic coconut oil toiletries for children made from natural ingredients sourced from an ethically family-run farm in Thailand.
Since then the business has gone from strength to strength. In 2015, Lauren secured a deal to stock her coconut oil in 200 Boots stores nationwide, increasing to more than 800 stores in 2018. She has launched new products including natural baby washes and gift sets, featured in Vogue Magazine, scooped various awards and has listings with JoJo Maman Bébé, Ocado and Amazon. Turnover grows year on year and the business has recently moved into new premises.
Lauren Taylor, 38, the founder of Kokoso Baby, said: “Having a baby with dry skin is a problem for a lot of mums, and I was driven to find a solution that would be able to treat it organically. I became passionate about the wonders of coconut oil, and it struck me that all parents needed to ditch the chemicals found in traditional baby skincare lotions.
“As soon as we started dealing with Boots, it meant growing quickly, which created a range of challenges. The more product we sold, the bigger our cash flow issues became. Thankfully, the loan helped us to fulfil our orders.
“We also received great support throughout the whole application process, from advice on writing a business plan to creating financial forecasts.”
Midlands-based, Aimee Johnston, had always harboured hopes of starting her own business when she began sewing clothes for her first child.
Based in Nottingham, Mommamakes produces unisex clothes for babies and toddlers in a ‘trendy’ style that are not generally found in traditional retailers.
In early 2015, when people started commenting on the quality of her handmade baby clothes, Aimee decided to start selling them through social media. However, Aimee soon felt that Mommamakes needed a more professional feel. She applied for a £2,000 low-interest loan to launch a website, online store and purchase higher quality sewing equipment.
Aimee Johnston, 31, founder of Mommamakes, said: “Since receiving the loan, Mommamakes has really started to take off. There has been so much demand that both myself and my partner now work full-time on the business. Last year our turnover was £500K, and we were able to hire two full-time employees.
“Although there have been many challenges along the way, I’m relishing in finally being a business owner. We have plans to expand our current range of clothing, and we’re hoping to get the attention of retailers in the near future. This should see our business grow from strength to strength.”
David English, Chief Marketing Officer at The Start Up Loans Company, said: “It’s fantastic to hear these success stories coming out of the Midlands and is a testament to the growing number of people in the region who are deciding to set up their own small businesses. With help from a low-interest loan, these businesses can find themselves scaling-up fast and making deals with large retailers in no time at all.
“It can be difficult to start your own business but Kokoso Baby and Mommamakes prove that with the right financial and mentoring support from The Start Up Loans Company, small businesses can flourish and grow, contributing to the UK’s economy.”
