Nigerian-style sweet bread specialist Eko Bakery has opened its doors in Newport thanks to £25,000 from the British Business Bank’s Start Up Loans programme.
Lagos-born support worker Adekunle Ashaolu was inspired to launch the craft bakery business after harbouring constant cravings for the home comforts of his favourite Eko bread whilst living in Wales for the past six years. He had previously been relying on visiting friends bringing the bakery delicacy to Newport from either London or Manchester, where it is more readily available.
The pillowy soft but dense white bread is made from cornflour with added sugar. Its recipe was brought over to Nigeria from Jamaican more than a century ago by Amos Shackleford (aka the ‘Bread King of Lagos’), who also introduced the bake to West African bakery production. Eko bread is popularly enjoyed for breakfast, going by the name of Agidi or Agege depending on the region.
Ashaolu first moved to the UK in 2009, studying accountancy in London before relocating to South Wales. With experience as a chef, he used the five-figure bank loan to launch his bakery venture, investing in kitchen equipment including a multi-deck oven and loaf tins as well as refitting a store on Cardiff Road in Newport.
“I have some financial knowledge but have found the business planning advice and realistic analysis of potential challenges, which have been raised in our discussions with British Business Bank, invaluable,” commented Ashaolu.
The father-of-three plans to oversee marketing, online sales, deliveries, and logistics for the business, and is currently looking to recruit a new baker to join his existing employee and train up five other sales and customer relations support staff.
“The bread is delicious for dipping,” he added. “Our chef is using a secret recipe which we know from home.”
Ashaolu noted that there was now a large and growing African community in Newport, with many members coming into the premises to make enquiries before launch. “We are confident we will be providing a popular product,” he expressed.
British Business Bank plc is wholly owned by the government’s Department for Business and Trade. Its Start Up Loans programme is not designed to generate a commercial profit and provides personal loans for business purposes of up to £25,000 at a 6% fixed interest rate per annum. Loan recipients are also offered free dedicated mentoring and support.
Since its inception in 2012, the British Business Bank scheme has delivered over 105,000 loans, providing more than £1bn of funding with £120m of that coming in its 2022/23 financial year alone. Around a third of the loans (31%) approved to date were given to people formerly unemployed or economically inactive, 40% of recipients were women, and 20% were from ethnic minority groups (not including white minorities).
Jessica Phillips-Harris, senior manager for Wales at British Business Bank, said programme exists for entrepreneurs like Adekunle who identify a way of benefitting the local community by offering a quality product as well as employment opportunities. “We wish him every success with his venture,” she added.
Other financing options available to UK bakery businesses looking to grow through capex in new machinery were discussed in our recent feature, Raising dough: smarter ways to invest in bakery equipment.
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