The UK has suffered from problems of under-investment and low productivity growth for a long time. This lack of investment and growth constraints how much money people are paid, how much money can be raised in taxes to pay for public services and the overall wealth of the UK population. The UK has experienced a large increase in the number of small firms in the economy over the last fifty years. As a result, around 60% of the working population rely on the small business sector for their jobs, incomes and well-being. A big concern, that has been around since the 1930s is that small firms may struggle to access loans from banks and investment from investors. For many reasons, there is a significant gap in our current knowledge about the contribution of smaller firms to the overall performance of the UK economy and specifically how their ability to access finance influences how they contribute to productivity. To fully understand how the 6 million small firms in the UK contribute to economic growth, this project helps researchers to understand more about small firms that are owned and managed by entrepreneurs. It explores how these entrepreneurs have personal preferences and talents that shape how their firms operate and explore potential opportunities for new investment that might lead to productivity-enhancing growth. When small firms have opportunities to invest, it then faces choices about how to fund these new investments. Many small firms have a strong dislike for external finance and choose to limit their investments to ones they can fund from their own resources. Others seek external debt, often bank loans, but are refused. Others get bank loans, but only get a fraction of the amount they requested. All of these scenarios potentially lead to an under-investment in productivity enhancing growth. This research project traces out the whole process from the small, entrepreneurial firm, to their investment opportunities and funding choices, and then examine how, when and where this process can lead to productivity growth. The project explore the chain of events in great detail and cover the full range of investment opportunities and potential sources of finance. This includes looking at bank debt, government guaranteed loans, "Peer-2-Peer" lending, Alternative Lenders, FinTech, right through to more sophisticated equity finance. This broad overview allows the project to establish, at each step in the causal chain of events, what types of firm face the greatest barriers to progression onto the next stage which ultimately end up with new investment and productivity growth. Specific points of focus within this chain of events will be on the identification of differences by (a) regions and place, (b) firms of different sizes, (c) firm of different ages, (d) differences by industry, and (e) patterns of innovation. The project builds a nuanced picture of the problems that small firms face accessing investment capital and increasing their productivity that will give policy-makers and businesses themselves the evidence to support a mutually beneficial and co-ordinated response to address these problems that may ultimately benefit the 6 million UK small business owners and their 16.8 million employees and their families.

The UK has suffered from problems of under-investment and low productivity growth for a long time. This lack of investment and growth constraints how much money people are paid, how much money can be raised in taxes to pay for public services and the overall wealth of the UK population. The UK has experienced a large increase in the number of small firms in the economy over the last fifty years. As a result, around 60% of the working population rely on the small business sector for their jobs, incomes and well-being. A big concern, that has been around since the 1930s is that small firms may struggle to access loans from banks and investment from investors. For many reasons, there is a significant gap in our current knowledge about the contribution of smaller firms to the overall performance of the UK economy and specifically how their ability to access finance influences how they contribute to productivity. To fully understand how the 6 million small firms in the UK contribute to economic growth, this project helps researchers to understand more about small firms that are owned and managed by entrepreneurs. It explores how these entrepreneurs have personal preferences and talents that shape how their firms operate and explore potential opportunities for new investment that might lead to productivity-enhancing growth. When small firms have opportunities to invest, it then faces choices about how to fund these new investments. Many small firms have a strong dislike for external finance and choose to limit their investments to ones they can fund from their own resources. Others seek external debt, often bank loans, but are refused. Others get bank loans, but only get a fraction of the amount they requested. All of these scenarios potentially lead to an under-investment in productivity enhancing growth. This research project traces out the whole process from the small, entrepreneurial firm, to their investment opportunities and funding choices, and then examine how, when and where this process can lead to productivity growth. The project explore the chain of events in great detail and cover the full range of investment opportunities and potential sources of finance. This includes looking at bank debt, government guaranteed loans, "Peer-2-Peer" lending, Alternative Lenders, FinTech, right through to more sophisticated equity finance. This broad overview allows the project to establish, at each step in the causal chain of events, what types of firm face the greatest barriers to progression onto the next stage which ultimately end up with new investment and productivity growth. Specific points of focus within this chain of events will be on the identification of differences by (a) regions and place, (b) firms of different sizes, (c) firm of different ages, (d) differences by industry, and (e) patterns of innovation. The project builds a nuanced picture of the problems that small firms face accessing investment capital and increasing their productivity that will give policy-makers and businesses themselves the evidence to support a mutually beneficial and co-ordinated response to address these problems that may ultimately benefit the 6 million UK small business owners and their 16.8 million employees and their families.

Future Finance 4 All, led by the University of Bristol, will take a mission led approach to accelerate innovation adoption in Mid-Tier organisations and small and medium-sized enterprises (SME), in the UK Financial Services (FS) Sector across the four UK home nations. The focus of this partnership is to enhance the sector's productivity and global competitiveness. To achieve this, we will develop an understanding, from a social science perspective, of the drivers and obstacles to innovation uptake in this target group. We will then put in place a mission-oriented approach that leverages both leading social science research and experience in supporting SME innovation adoption to inform the development of an innovation adoption accelerator. The accelerator will be delivered over three phases, Phase 1-Local, Phase 2-Regional, Phase 3-National. Working with partners, including policy makers, industry and community organisations, the accelerator will help us overcome obstacles and drive innovation adoption across UK regional FS clusters. This will overcome the market failures that are holding back innovation uptake, unlocking productivity and levelling benefits across the UK regions. The accelerator will also enable us to also tackle societal challenges around responsible access and uptake of FS for underserved communities, individuals and companies. This will lead to the development of new bespoke products and services, which the Mid-Tier organisations and SMEs, which are the accelerator's focus, could then exploit. This potential 'market making opportunity' for new FS product and service innovation could have relevance in both UK and global markets that share similar inclusion challenges. The innovation accelerator activities will facilitate networking and partnerships between social science experts and the financial services community through innovator pathway fellows', drawn from high potential early career researchers. Building on our partnership's research base and expertise supporting innovation clusters, we will then deliver a rolling collaborative challenge programme that brings together industry, academic and social insights to explore and address barriers to innovation adoption. Through a rolling programme and digital platform the challenge programme outputs will inform the development of specific interventions for FS firms and stakeholders to enable them to gain the skills and capabilities to innovate. To maximise engagement and efficiency the innovation skill & training Programme will be delivered in scalable hybrid format and include peer-to-peer learning. Foundational to the Programme will be a focus on inclusive growth and diversifying the talent pipeline, addressing key findings from the 2022 UoB-led FinTech report, Kalifa Review, cross-sector surveys (EY and Innovate Finance, 2022), and sector-wide consultations. The accelerator will support the creation of habit-forming behaviour change through the exploitation of the Quadruple Helix model that brings universities, underserved communities, industry (including the sector's charities and not for profit players) and government to: Better connect key actors across the FS sector to overcome fragmentations, this will build new skills and capabilities within the partners and the project team. Ensure that the voices of underserved communities, individuals and companies are heard and reflected in the tangible delivery of new, or enhanced, FS products and services. Stimulate and support industry to prioritise innovation investment. Provide pathways, and practical solutions, to enable innovation uptake, including digital innovation, that enhances the productivity of mid-tier FS organisations and SMEs. A key project output will the measurement of these productive gains and their impact on the organisations that we support, and how this will contribute towards UK regional levelling up by unlocking a broad spectrum of organisational, economic and social benefits

The ACORN network's mission is to bridge the gap that currently exists between the research in universities and the need of the financial services industry, its consumers and the regulator. ACORN wants to grow to well over 100 primary partners and 1000 associated partners, offering an inclusive, diverse and responsible research culture. Based on regional presence in Wales, Scotland, North-East England and London, it will harmonize technological know-how across regions and connect regional partners to nation-wide efforts. Real-life challenges in financial services are complex, combining responding to technology innovation with business ethics, green/environmental considerations and scarcity in the talent pipeline. This presents FS with wicked problems, which the industry cannot ignore, and which require people and researchers from across disciplines to come together. ACORN aims to address wicked problems in FS that are associated with innovation in technology, mathematics and sciences. ACORN provides a number of mechanisms to succeed in this mission. Central to ACORN's working is its 'commissioning framework', which provides the funding mechanisms for five types of collaborative projects between academia and partners. ACORN offers seed project funding, which aims to explore technological, mathematical and scientific solutions for real-life challenges in FS, prioritised through co-design sandpits. It then offers funding for larger multi-disciplinary feasibility projects, which may build on the seed projects, and expand to consider 'wicked' multi-disciplinary research problems. In parallel, ACORN offers funding for agile projects, which can be of any type, e.g., horizon scanning, population survey, a software prototype or a machine learning application. These have predetermined IP arrangements, so that they can be organised in agile manner and can start at any time for the duration of ACORN. Additionally, impact projects are offered to take any of the research projects further (e.g., to influence policy makers, or initiate commercialisation), and education/engagement projects allow to grow the FS talent pool and address the talent pipeline. To support researchers and partners in these project, ACORN establishes a number of services the community can use. The co-design service and the corporate digital responsibility service help researchers to consider these aspects in their proposals. The secure data vault, the shared code base, the experimentation sandbox and template IP arrangements are available to improve research, its impact and to lower collaboration barriers. We name the network ACORN, to signify that collaborations as majestic as an oak tree can grow from humble beginnings.