What have we achieved through providing business loans and support?-

Who have we lent to?

• 89% of clients have under 10 staff
• 64% are start-up enterprises
• 36% are existing enterprises

What do they say about us?(independent evaluation 2008)

• 100% of clients would recommend us to other businesses
• 77% think DSL is good or very good in comparison to other sources of finance
• 92% of clients are happy with the post-loan contact they receive
• 86% received some assistance with their application
• 93% of clients had approached a bank for finance before coming to DSL
• 82% of clients perceived DSL to be the only source of finance available to them

Established in Glasgow, Scotland in 1993, our remit was to “encourage and nurture profitable and sustainable enterprises in the areas that are amongst the most depressed and disadvantaged in Glasgow”. 

In 2009 our ethos of encouraging and nurturing businesses has not changed  but our geography now takes in most of lowland Scotland.

DSL is Community Development Finance Institution (CDFI) providing business start-up and growth loans for small businesses and social enterprises that can’t access funding from banks and other traditional sources.

-The first fifteen years – 1993 – 2008

• £7M lent to 600 businesses
• 2000 more people employed as a result of DSL lending – average cost per job of £4235
• £12M levered into Scottish businesses from other sources
• 70% of the businesses lent to are in are the most deprived postcodes in Britain 

2004 - 2009

In 2004, Developing Strathclyde Ltd, rebranded under the name DSL Business Finance. However DSL’s philosophy about providing access to finance is still the same.

In 2004 we expanded to cover a wider area including Ayrshire, Lanarkshire, Dunbartonshire, Renfrewshire and Glasgow. 

In 2008, due to demand we expanded again to cover Edinburgh, Stirling, Falkirk, West Lothian, East Lothian and Mid Lothian.  During late 2008/2009 we have looked to increase the access to finance we provide by reaching most of lowland Scotland and are happy to consider loans from other areas in Scotland where we have capacity to deliver.  We are seeking partners to increase this coverage to meet our aim of access to business finance for all.

1993 - 2001

The formation of DSL in 1993 was as a direct response to research into the difficulties faced by people from under-invested communities when attempting to access funding for new or existing businesses.  In response the Glasgow Regeneration Fund (GRF) was established to provide microfinance to entrepreneurs in Glasgow.

GRF raised over £3 million from public and private sector sponsors, including ERDF Glasgow City Council’s and Scottish Enterprise Glasgow. The private sector also made significant financial contributions, this included support from; The Body Shop, The Royal Bank of Scotland and British Petroleum.  Seconded managers were provided by Clydesdale Bank and Bank of Scotland.  GRF was formally wound up in June 2001, having invested over £3 million in 372 “high risk” enterprises, creating 2,126 new jobs and safeguarding over 1,000 existing jobs.

In 2001 we built on the success of GRF by developing two new funds the Social Enterprise Fund (SEF) for social economy organisations and the Western Scotland Regeneration Fund (WSRF), The funds were raised from ERDF , the Phoenix fund from the DTI and DSL’s first commercial loan from Unity Trust Bank.

MICROCREDIT (group lending)

For women 2001 - 2007

A report looking at the relevance of the Grammen Bank Model pioneered by Mohammed Yunus  was commissioned by DSL in 1995.  In 1999 £25,000 was ring-fenced from DSL’s budget to provide the initial loan fund for the The Glasgow Women’s Microcredit Project.  This was managed in conjunction with the Wellpark Enterprise Centre who provided training to the women and co-ordinated operations.  

DSL provided the loan capital element of the project alongside advisory and fund management support.  The programme targeted women who may otherwise never have the confidence to go into business, and women who have particular difficulty accessing capital for their existing business. Due to the success of this local pilot Scottish Enterprise developed and launched the National Microcredit Programme which operated successfully throughout the Scottish Enterprise area. This ended in 2007 due to funding restraints.  DSL still manages repayment of issued microcredit loans on behalf of Scottish Enterprise.