By Xinyi Gao, Creare Capital
At Creare Capital, we spend a lot of time thinking about how creative businesses grow, and, crucially, why so many promising ideas struggle to get off the ground. The government’s new Creative Industries Sector Plan (23 June 2025) offers a refreshed plan for tackling the challenges facing the sector. If you’re starting a creative business, funding can feel like the biggest hurdle standing between a great idea and a successful venture. Whether you are a designer, filmmaker, developer or performer, the same story repeats; brilliant ideas are held back by a lack of financial confidence, limited assets, or an industry that traditional lenders simply do not understand.
The Creative Industries Sector Plan takes the form of a £150 million Creative Places Growth Fund to the expansion of accredited lenders and backing for IP-based lending. This is designed to help creative entrepreneurs get started. But these changes will take time to reach the ground. If you are launching your creative business now, what can you do today to overcome these funding barriers? Here are some practical steps that we believe early-stage creative founders can take:
1. Build up your financial literacy
A consistent challenge flagged by creative founders is a lack of confidence when talking about money. You don’t need to become an accountant, but getting familiar with basic financial terms, understanding what investors or lenders look for, and learning how to build a simple cashflow forecast will make you far better prepared. Online resources such as the British Business Bank’s Finance Hub, and local enterprise networks are a good starting point.
2. Start small, but think big
The finance world can feel intimidating, but breaking your funding journey into stages will help. The Creative Industries Sector Plan promises to expand mentoring and pitch training through the Creative Places Growth Fund, so take advantage of these resources when they appear, but in the meantime look for local startup networks and incubators who can help you practise. Check out Barclays Eagle Lab, who provide a free digital learning platform to help founders start or scale their business via their Entrepreneur Library.
3. Think creatively about collateral
Creative businesses often struggle to meet traditional security requirements, because their main assets are their ideas. The government has promised more support for IP-backed lending, allowing founders to use their intellectual property as security. Until these measures are more widespread, try to document your IP from day one. Register copyrights, trademarks or designs where you can, and build a portfolio that shows the commercial potential of your work. It may help you strengthen your case with funders.
4. Find the right funding mix
There is no one-size-fits-all route to finance. Grants can be excellent for early-stage ideas but are rarely a long-term strategy. Loans require repayment, so think carefully about your business’s ability to service them. Equity investment (selling shares in your company) may suit those with high-growth ambitions. A blended approach, using different funding sources at different stages, is often most effective.
5. Prepare for a long game
One frustration we hear often is how slow funding decisions can be, especially from traditional lenders or large grant bodies. Start early and expect funding applications to take time. Keep building your network, updating your pitch, and refining your proposition so you are ready when opportunities arise.
The 2025 Industrial Strategy is a positive step forward, but in our view, it is only the beginning. The real challenge is making these plans work on the ground, so that funding is not just available, but genuinely accessible to those who need it most.
Read the full Creative Industries Sector Plan HERE
ABOUT CREARE CAPITAL:
Creare Capital is a funding-finding platform dedicated to improving access to finance for creative and digital businesses across the UK. Through its tailored tools and expertise, Creare Capital connects creative SMEs to grants, loans, and investment opportunities, while developing innovative approaches such as the Investment Readiness Score (IRS) to build confidence and improve funding outcomes.
Backed by Innovate UK and accepted onto the FCA Innovation Pathways Programme, the company is also leading work on a financial readiness toolkit that integrates behavioural insights and open banking data. Creare Capital is committed to supporting the growth, resilience, and long-term sustainability of the UK’s creative industries.
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