A NEW report reveals businesses are powering the economy on an “incredible” scale.

Published by Oxford Economics, the report shows small businesses in Brighton and Hove created 490 jobs in the city during 2018.

Brighton and Hove has emerged as one of the top places in the UK outside London where small businesses are turning to “fintech” – financial technology – platforms to finance their growth.

Last year, small businesses had £15 million in loans through Funding Circle in Brighton and Hove.

The figures released show this contributed some £28 million to the local economy.

Small businesses account for 60 per cent of private sector employment and 50 per cent of UK gross domestic product, yet continue to struggle to access finance through traditional sources ten years on from the financial crisis.

At the same time, the number of UK small businesses has increased by more than 260,000 since 2015.

The news highlights the extent to which technology is transforming the financial landscape and the increasing number of businesses moving away from a “bank first” approach to finance as a result.

Pizzaface is a business which chose fintech for financial support instead of the banks. Pizzaface opened in 2009 as a small takeaway in Kemp Town.

The business has grown substantially, adding two further branches in Hove in 2013 and Worthing in 2016.

A loan from Funding Circle shortly after the opening of the third restaurant has helped sustain this growth and the company now employs 50 staff across Sussex.

Part of this is the new pizza trailer the company has bought, which will enable it to provide events catering services at weddings and festivals.

Bertie Van Der Beek, of Pizza Face, said: “It’s fantastic to see the impact that businesses like ours are having on our local economy.

“When we had just opened our third store, we needed support with working capital in order to keep our booming business going.

“Knowing the length of time it takes to get a loan from a bank, we approached Funding Circle first on the recommendation of my accountant and were blown away by the speed of the process.

“In a matter of days, we had the funds in the bank and as a result, the jobs of my 45 employees were sustained.

“We’re always looking for new ways to grow, and Funding Circle will be our first port of call the next time we’re looking for a loan.”

James Meekings, co-founder and UK managing director of Funding Circle said: “Small businesses drive much-needed job creation and power our local economies on an incredible scale.

“Yet while bank lending to large firms has increased by 43 per cent over the past three years, it’s decreased to small businesses by three per cent. That’s why helping them to grow is at the forefront of our mission; and it’s incredibly rewarding to know that when £1 is lent through our platform, small businesses contribute an additional £2 to our economy.”