Nottingham couple use £60,000 Business Loan to purchase and grow an independent yarn shop
Knit Nottingham, the award-winning independent yarn shop in the heart of Nottingham, is celebrating two years of growth and success. It follows £60,000 in funding secured with support from First Enterprise through the Midlands Engine Investment Fund II (MEIF II).
Since receiving the investment in 2024, the business has expanded its product range, strengthened its community offering, and continued building its reputation as one of the East Midlands' leading destinations for knitting and crochet enthusiasts.
The funding supported Co-Owners Hannah and Daniel Byrne in purchasing the business from its previous owner, investing in stock, covering legal costs, and providing working capital.
Since taking ownership, the couple have combined Hannah's retail expertise (recognised in the 2019 Inspirational Women in Business awards) with Daniel's e-commerce and marketing experience to build on Knit Nottingham's strong foundations, while introducing new ideas for customers both in-store and online.
Hannah and Daniel had a dream of owning a small business that acted as a creative hub within the community
In 2024, Hannah and Daniel were presented with the opportunity to purchase Knit Nottingham from its previous owner. The roadblock in their way was a lack of funds to complete the purchase and invest in the business’ future. That’s where First Enterprise stepped in.
Hannah Byrne said of the funding: “They helped us achieve our dream of owning a small business that also serves as a community hub for fellow creatives. Balancing life with a two-year-old and work, we thought this would be impossible, but our Investment Manager at First Enterprise made the daunting process easy to follow and kept us updated every step of the way.”
Hannah and Daniel were presented with a wide range of lenders that offered them funding with accompanying high interest rates. They could see the long-term issues those loans might create for their future cash flow.
They were working with John Fuchs of ASC to secure the purchase, and he suggested they speak to our team at First Enterprise.
We were able to offer comparatively more affordable rates than the other lenders they spoke to, as well as access to much-needed guidance and ongoing support.
A Business Loan helped Hannah and Daniel acquire Knit Nottingham and begin the process of growing the business
Daniel said of their early days running Knit Nottingham: “When we took over the business, it had limited choice and not a lot of natural fibres or premium yarns. We’ve worked hard through our social media, YouTube podcast, and talking to customers directly to provide a greater choice of yarns that you may not find in most shops.
“We’ve grown our own Craft and Chatters, which take place on the 2nd Saturday of every month, into its own little community of crafters of all ages and walks of life. It’s a joy to watch people come as strangers and leave with new friends and skills.
“We’ve also updated our logo and created a new shop doodle ready for a few exciting secret projects.”
Over the past two years, the business has expanded its range of British yarns to include seven collections, including:
Small-batch knitting kits produced on the Isle of Colonsay
Hand-spun yarn from Melbourne in Derbyshire using rare Portland breed sheep from Calke Abbey
Local small batch hand dyed yarn.
Alongside this, Knit Nottingham has opened its workshop space to other independent creatives, hosting popular events including Wine and Twine in partnership with fellow Nottingham business Inknotts.
All their hard work has paid dividends with Knit Nottingham continuing to grow and see an increase in sales. Hannah and Daniel report that: “We've seen a 6% increase in average spend from January to August this year compared to the whole of 2025 and we're just coming into our busiest half of the year, so we expect that number to continue to increase.”
First Enterprise is proud that have helped a local business grow
Danielle Davis, Deputy Director at First Enterprise, said of Knit Nottingham’s success: "It's incredibly rewarding to revisit businesses like Knit Nottingham and see the difference funding can make over time. Hannah and Daniel have taken an already well-loved business and built on its success, creating new opportunities for customers, supporting local makers, and strengthening Nottingham's creative community.
"Their progress over the past two years is exactly the kind of long-term impact the Midlands Engine Investment Fund II was designed to achieve."
Hannah and Daniel said of their experience working with First Enterprise: "It was a no-brainer working with First Enterprise, especially with them being based in Nottingham. We saw that they’ve helped thousands of people, which made them the obvious choice to help us grow our business.
"The experience from day one and continued check-ins and support really show how much they care about growing small businesses and seeing them succeed rather than just a return on their pound.”
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