A study has revealed just how critical the government’s boost to the Enterprise Investment Scheme (EIS) is, after investment across the economy dropped by £268 million last year.
The Budget, announced earlier this week, increased the annual EIS limit for companies from £5 million to £10 million – a welcome change after investment plummeted by up to 58% in some key sectors.
The business finance experts at money.co.uk business loans have analysed government data to reveal how investment via government-backed EIS and SEIS schemes changed last year compared to the previous year.
Sectors with the biggest increase and decrease in investment:
| Rank | Industry | Funds Raised Through EIS or SEIS in 2022-23 | Funds Raised Through EIS or SEIS in 2023-24 | Percentage Change |
| 1 | Transport and Storage | £10,000,000 | £14,000,000 | +40.00% |
| 2 | Financial and Insurance | £111,000,000 | £121,000,000 | +9.01% |
| 3 | Arts, Entertainment and Recreation | £34,000,000 | £35,000,000 | +2.94% |
| 4 | Health and Social Work | £44,000,000 | £43,000,000 | -2.27% |
| 5 | Wholesale and Retail Trade, Repairs | £167,000,000 | £159,000,000 | -4.79% |
| 6 | Information and Communication | £750,000,000 | £650,000,000 | -13.33% |
| 7 | Professional, Scientific and Technical | £389,000,000 | £332,000,000 | -14.65% |
| 8 | Accommodation and Food | £50,000,000 | £41,000,000 | -18.00% |
| 9 | Education | £22,000,000 | £18,000,000 | -18.18% |
| 10 | Admin and Support Services; Public Admin, Defence and Social Services | £109,000,000 | £89,000,000 | -18.35% |
| 11 | Manufacturing | £300,000,000 | £240,000,000 | -20.00% |
| 12 | Electricity, Gas, Steam and Air Conditioning; Water, Sewerage and Waste | £17,000,000 | £13,000,000 | -23.53% |
| 13 | Real Estate | £4,000,000 | £3,000,000 | -25.00% |
| 14 | Construction | £17,000,000 | £8,000,000 | -52.94% |
| 15 | Agriculture, Forestry and Fishing; Mining and Quarrying | £17,000,000 | £7,000,000 | -58.82% |
| N/A | Total across all sectors | £2,041,000,000 | £1,773,000,000 | -£268,000,000 |
*Figures have been rounded to the nearest million
Joe Phelan, money.co.uk business loans expert, comments:
“Access to capital is a key driver of growth. Without external funding, businesses risk falling behind more agile competitors. The right financial support can accelerate growth by enabling faster hiring, investment in equipment, and expansion into new markets, all without relying solely on internal cash flow.
“Early-stage funding doesn’t just support day-to-day operations, it gives businesses the freedom to innovate. With the right backing, you can invest in R&D, adopt new technologies, and bring ideas like sustainable processes or new products to market faster.
“Not all sectors attract consistent early-stage investment, even through schemes like EIS and SEIS. To improve your chances, first ensure your business meets the eligibility criteria, such as asset and employee limits, and present a credible, data-driven growth plan with clear milestones to build investor confidence.
“Even in sectors with lower investment levels, business loans can provide a reliable way to access growth capital. Whether you’re investing in equipment or expanding operations, loans offer predictable, scalable funding that isn’t dependent on investor appetite.”
