By Richard Johnstone | 28 May 2012
Prime Minister David Cameron has today urged young people to bid for a share of a £82.5m government loan scheme to help them set up their own business.
The StartUp Britain scheme has been launched to provide finance worth around £2,500 to people aged between 18 and 24 who are forming new enterprises.
The loans will provide early-stage funding for new firms, as well as a mentoring service. They must be repaid within five years, and interest will be charged at the level of the Retail Prices Index plus 3%.
Cameron said that he hoped the funding would lead to more than 30,000 new firms being created across the country.
‘I want this to be the year where people can think yes, I can do it, that we can get as many viable businesses as possible off the ground, that people can have a go, and that we see a whole new wave of entrepreneurs who start small but think big,’ he said.
‘Start-up loans are a fantastic opportunity for young people, not only to get the financial support they need, but also to give them the confidence to believe they can do it, that they can turn that of an idea into the next global brand.’
The launch follows an enterprise review undertaken by the former Conservative trade secretary Lord Young of Graffham, which found many people are unaware of the benefit of starting their own business.
Young’s report, published today, called for a government-backed scheme to provide young entrepreneurs with necessary sources of funding.
‘A bank would not give it to a young person without any track record,’ Young said.
‘There are one million young people out of work. By opening up funding which will cover the cost of starting up, we hope to create an environment where setting up on your own is viewed widely as a real and valid career choice.
‘These days you don’t need a huge amount of investment capital behind you. The nugget of a good idea, a telephone service, broadband connection and sound business advice are all that a modern entrepreneur needs to get going.’
Nearly 40,000 new companies were formed in the UK in April 2012, up 19.1% on April 2011, figures from Companies House have revealed.
However, Young’s report concluded that the UK could have 900,000 more businesses if it had the same rate of entrepreneurship as the United States.
Prime Minister David Cameron has today urged young people to bid for a share of a £82.5m government loan scheme to help them set up their own business.
The StartUp Britain scheme has been launched to provide finance worth around £2,500 to people aged between 18 and 24 who are forming new enterprises.
The loans will provide early-stage funding for new firms, as well as a mentoring service. They must be repaid within five years, and interest will be charged at the level of the Retail Prices Index plus 3%.
Cameron said that he hoped the funding would lead to more than 30,000 new firms being created across the country.
‘I want this to be the year where people can think yes, I can do it, that we can get as many viable businesses as possible off the ground, that people can have a go, and that we see a whole new wave of entrepreneurs who start small but think big,’ he said.
‘Start-up loans are a fantastic opportunity for young people, not only to get the financial support they need, but also to give them the confidence to believe they can do it, that they can turn that of an idea into the next global brand.’
The launch follows an enterprise review undertaken by the former Conservative trade secretary Lord Young of Graffham, which found many people are unaware of the benefit of starting their own business.
Young’s report, published today, called for a government-backed scheme to provide young entrepreneurs with necessary sources of funding.
‘A bank would not give it to a young person without any track record,’ Young said.
‘There are one million young people out of work. By opening up funding which will cover the cost of starting up, we hope to create an environment where setting up on your own is viewed widely as a real and valid career choice.
‘These days you don’t need a huge amount of investment capital behind you. The nugget of a good idea, a telephone service, broadband connection and sound business advice are all that a modern entrepreneur needs to get going.’
Nearly 40,000 new companies were formed in the UK in April 2012, up 19.1% on April 2011, figures from Companies House have revealed.
However, Young’s report concluded that the UK could have 900,000 more businesses if it had the same rate of entrepreneurship as the United States.
