Start Up Loans programme celebrates £75 million in funding for Scottish businesses
A 20-year-old award-winning hospitality entrepreneur is gearing up for a busy summer of events in Dumfries and Galloway, following a funding boost from Start Up Loans to support the expansion of his business’s headquarters at the family farm in Sanquhar.
Knockenhair Hospitality is run by Harry Gallacher, with support from his siblings and cousins, and supplies top-quality food and drink for events of all kinds, from weddings and corporate dinners to gala days and pop-ups, including the annual Wigtown Book Festival.
The business recently became the recipient of the seventy-fifth millionth pound provided by the Start Up Loans programme in Scotland. Since launching in 2012, the Start Up Loans programme has provided over £75 million worth of funding to businesses in Scotland, with 8,000 loans provided to entrepreneurs.
Knockenhair Hospitality received £20,000 funding through the programme via its Business Support Partner, DSL Business Finance. The finance is supporting an upgrade to prep kitchen facilities and the purchase of industrial-scale equipment.
The family are no strangers to the catering scene, with Harry’s grandmother, Nancy, having operated a similar firm for over 30 years before retiring in 2015. Following in her footsteps, Harry studied professional cooking and hospitality management at Dumfries and Galloway College and started his own cake-making venture before deciding to bring the family business back to life at the age of just 18.
Nancy, now 79 years old, still helps out behind the scenes and gives her grandchildren valuable advice as well as taste-testing the firm’s famous strawberry tarts, of which over 6,000 were produced last year.
Harry said: “While I was much too young to help out, I have fond memories of spending my weekends and school holidays pottering about in my gran’s commercial kitchen and getting a taste of how the business worked – as well as trialling the recipes. Going to college to study hospitality was the obvious choice for me after finishing school and, following stints working in a couple of local bars and pubs, I felt that the time was right to give the catering business a go.
“The prep kitchen that my gran had used was still in decent condition, but now that I’m a couple of years into running the business, it feels like a good time to upgrade some of the equipment and increase the size of the space. It is still very much a family venture, and it is great to be able to get my gran’s advice and also pick up again with some of the regular customers that she catered for years before.
“This summer we expect to be busier than ever with weddings and corporate events, covering everywhere from Glasgow to Carlisle.”
Since launching Knockenhair Hospitality in 2023, the business has grown to a team of 20 people and, following the kitchen refurbishment, Harry has ambitions to increase the business’s footprint in the years ahead. In November 2024, he picked up the Young Entrepreneur trophy at the Dumfries and Galloway Life Awards.
Gareth Thomas, Minister for Small Businesses, said: “Supporting family run businesses like Knockenhair Hospitality to access the finance they need to scale up and succeed is a key part of our Plan for Change. This is an important milestone for the Start Up Loans programme in Scotland, helping to back our nation’s brilliant entrepreneurs and boost the economy right across the UK.”
Barry McCulloch, Senior Manager, UK Network, Scotland at the British Business Bank, said: “Hospitality has been one of the core sectors that we have supported through the Start Up Loans programme in Scotland, so it is fitting to see the £75 million milestone celebrated with Knockenhair Hospitality. The success to date highlights the effectiveness of the programme in addressing regional imbalances and access to finance among smaller businesses, which are of huge importance to the Scottish economy – particularly in rural communities.”
Lindsay Hamilton, loan officer at DSL Business Finance, added: “Working with Harry on his application for the Start Up Loan was a pleasure. Harry has a really good understanding of the financials of his business and was organised and professional, and able to give me all the required information in a timely manner. He is a driven individual and I can see how he has achieved so much at his young age.”
