The review also found that over a third (35%) of those surveyed wouldn’t have started a business at all without the support of the programme.

The scheme is operated by the Start Up Loans Company – a subsidiary of the British Business Bank – and has delivered over 50,000 loans since it began operating in 2012.

The review has produced three key findings:

• the programme has a significant and positive effect on the start-rate of beneficiary businesses
• the programme has had a significant and positive effect on the likelihood that businesses increased their sales from year to year
• the programme represented positive value for money, with economic benefits estimated at around three times higher than economic costs.

The review was an independent, interim assessment of the programme’s impact focused on benefits delivered for target groups and value for money.

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This is the second annual update of a long-term, independent, research programme, commissioned by the British Business Bank and undertaken by SQW Ltd, BMG Research and Aston Business School.

The main purpose of the research programme is to provide an assessment of the economic impact of the programme, whether it has been appropriately targeted and whether economic return from the programme can be enhanced.

Matt Adey, director of economics at the British Business Bank, said: “We welcome [the] interim findings by SQW Ltd.

“As the UK’s government-owned economic development bank, we are committed to ensuring our work receives independent scrutiny and are pleased that today’s findings show that the Start Up Loans Programme is helping to boost the number of people setting up their own business.”

Joanna Hill, CEO of the Start Up Loans Company, added: “I am really pleased to see the positive outcomes from the year two evaluation.

“It is really encouraging to see that Start Up Loans are continuing to provide much-needed support and opportunity to new business owners and the real contribution they make to the economy.”