By Claire West
An £82.5 million StartUp Loan scheme is to be launched today that will give our next generation of entrepreneurs the finance and support to potentially start over 30 thousand new businesses, in a move to boost enterprise and economic growth.
Any young people aged 18—24 accessing the StartUp Loans can expect to receive expert and personal support to help develop a business plan and access training. Where the business plan is robust and approved, they will be able to access financial support in the form of a loan typically in the order of £2,500 with a repayment period of up to five years.
It comes on the day that Lord Young’s report on enterprise is published which shows that if we had the same rates of entrepreneurship as the US than we would have 900,000 more businesses in the UK.
StartUp loans will be administered by a range of organisations that have experience in working with young people, including the Prince’s Trust and Manchester-based Economic Solutions Group. These delivery partners will be responsible for providing start-up support, for assessing the business plan, for making the loan and for managing repayment.
James Caan, one of the UK’s best known entrepreneurs, has agreed to chair a new body to oversee the allocation of funds and to work with delivery partners to ensure the young people gain the maximum benefit from the support and finance on offer.
Caan said: "The StartUp Loans initiative provides guidance, access to expertise, and finance. These are the three vital ingredients for starting your own business. Armed with all of these, young people are already on the way to shaping their own future."
From today young people looking for support and finance through the StartUp loans can register at http://businessinyou.bis.gov.uk/ where they will then be directed to a provider once they are on board.