Over recent weeks at Balance, we have been keeping an eye on developments regarding the new Start Up Loan Scheme for Young Entrepreneurs.
The scheme was outlines in the 2012 Budget; it has been confirmed that the scheme will be piloted in partnership with the National Youth Enterprise Working Group.
Based on the current student loan system, the initiative will enable young people who choose not to go to university to access low interest loans for starting up a business.
There is an anticipated overall budget of £10 million available. Loans are expected to be worth up to £2,500 per individual. The scheme will also provide access to training and business mentors.
Young entrepreneurs aged 18-24 who are planning to start up a business enterprise in the UK will be eligible to apply for a loan.
The pilot scheme, which will last for one year, is now expected to launch later this year. Details and deadline information (if applicable) will be reported when available.
The Prime Minister’s enterprise advisor Lord Young recently outlined details of the new fund. Responding to a query by an entrepreneur, Lord Young said: “We will give you a mentor and if it [the business] passes a panel you are on your way.”
“We want to give young people the best possible chance to start and grow their own enterprise,” said Business Minister Mark Prisk. “This scheme is not just providing a small amount of funding, but is about looking at the bigger picture and we want to be able to offer a full package of business training and mentoring.”
Source: BIS 9/5/2012
At Balance we think that this scheme could be a real key development in enabling young people get their business ideas off the ground. For people who don’t feel that university is the way for them, and don’t want to rely on banks (or who have no chance with getting help from banks), this could be a great opportunity. The fact that these loans also involve providing business guidance and mentoring is an especially pleasing facet. It meets our philosophy perfectly, and is how we work throughout the year already with many of our clients who use our Start Up and Boardview services.
We’ll be keeping a close eye on further developments and hope to be guiding and mentoring local young entrepreneurs soon…. Watch this space….
Article compiled by Deborah Bradley on behalf of The Balance Team