HSBC UK and FGF Urge Government Action to Unlock £615bn from Underserved Entrepreneurs

HSBC UK and the Future Governance Forum (FGF) have released a report outlining the persistent equity gap facing underinvested founders in Britain. For fintech professionals, this highlights a critical failure in capital allocation, where female, ethnic minority, and disabled entrepreneurs remain systematically underserved by traditional debt and venture capital markets despite their growth potential.

What was announced

The report identifies a "persistent equity gap" in the UK, noting that female-only businesses received a mere 2% of venture capital in 2024. The disparity extends to ethnic minority founders, who are twice as likely as their white counterparts to identify access to finance as a primary obstacle. Furthermore, 84% of disabled entrepreneurs report they do not have equal access to resources. In the debt finance market, ethnic minority SMEs face a decline rate twice that of white-led businesses. While approval rates for women are similar to men once an application is made, women typically apply for significantly smaller amounts—averaging £104,000 compared to £198,000 for men.

To address these gaps, the report proposes seven key interventions designed to accelerate change with limited public spending. These include directing the British Business Bank (BBB) to adopt a measurable target for capital reaching underinvested founders and establishing a common data standard to track these flows. It also suggests a dedicated angel co-investment and training programme funded through the BBB’s £400m Investor Pathways Capital initiative. Other proposals include a Youth Enterprise Scheme (YES) providing financial subsidies and mentorship to young people on Universal Credit, and the scaling of Community Development Financial Institutions (CDFIs) to serve as genuine alternatives to traditional lenders. For its part, HSBC UK has committed £5bn in lending to small businesses over the next five years, alongside its Women’s Business Growth Initiative.

"If this government really wants ‘good growth in every postcode’ then it should leave no stone unturned. As things stand, too many entrepreneurs struggle to access the finance they need to start up, scale up and stay here in the UK - and that’s especially acute for female, disabled, working class and ethnic minority founders."

Adam Terry, FGF Executive Director.

The companies involved

HSBC UK serves as the ring-fenced retail and commercial banking arm of the HSBC Group, one of the world’s largest financial services organisations. In the UK market, the bank is a primary provider of liquidity to the SME sector, recently committing significant capital to support small business growth through initiatives like the Women’s Business Growth Initiative. This programme is designed to provide women-led businesses with specific growth-focused tools and support, reflecting the bank's broader strategy to address systemic barriers in the entrepreneurial ecosystem. Tom Wood serves as Managing Director, Head of Business Banking, HSBC UK.

The Future Governance Forum (FGF) is a policy think tank dedicated to improving the UK's governance and economic frameworks. By partnering with major financial institutions like HSBC UK, FGF aims to provide practical, evidence-based steps for the government to achieve its growth ambitions. The organisation focuses on ensuring that economic growth is inclusive, advocating for policies that support founders from diverse backgrounds, including those from working-class, ethnic minority, and disabled communities. Together, these organisations are positioning themselves as key advisors to the UK government on how to unlock the economic potential of underrepresented entrepreneurs.

What FF News has reported before

FF News has previously tracked HSBC UK’s efforts to expand the reach of SME financing and drive technological innovation within the sector. In July 2026, we reported that Bibby Financial Services Secures €250m HSBC Facility to Fuel Global SME Growth, a move that highlighted the bank's role in providing the wholesale liquidity necessary for alternative lenders to reach smaller businesses. Additionally, the bank’s focus on the future of commercial interactions was evidenced when HSBC UK and Visa Pioneer Agentic Commerce with Industry-First AI-Powered Transaction. This industry-first transaction demonstrated HSBC UK’s commitment to integrating advanced AI into the financial ecosystem, a theme that aligns with the current report’s call for a more modern, data-driven approach to tracking and facilitating capital flows to diverse founders.

What this means

This announcement signals a shift in the dialogue surrounding UK productivity, moving from general "growth" rhetoric to specific, measurable accountability for the British Business Bank. By calling for a common data standard, the report puts pressure on the venture capital and debt markets to move beyond voluntary codes and toward transparent reporting. For the fintech sector, the emphasis on scaling CDFIs and redesigning the Business Growth Service suggests that traditional banking models are no longer seen as sufficient on their own. The real question for the industry is whether the government will mandate these targets, potentially forcing a redistribution of capital that could disrupt established VC networks and create new opportunities for alternative lenders.