The government has launched an £82 million scheme to enable people between 18 - 24 to start their own businesses.
David Cameron said he hopes the initiave could lead to 30,000 more start-ups and unleash a “new wave” of enterprise to support economic growth. He also added that he wanted young people to have the confidence and support to turn “that spark of an idea into the next global brand”.
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Each StartUp loan is expected to be around £2,500 and would need to be repaid within five years, with interest charges at the level of the Retail Prices Index plus 3%.
This scheme comes out just as an enterprise review by former Conservative minister lord Young of Graffham revealed that Britain would have 900,000 more business if it had the same rate of entreprenaurship as the US.
He told the BBC:
“A bank would not give it to a young person without any track record,”
“It’s more than money,” he added. “What they’re getting are mentors - it’s advice that really counts.”
He went on to say:
“But we cannot be complacent. Now, more than ever, we have got to get behind our small businesses and encourage even more people to seize the opportunities and support that there is to start up on their own.”
Former Dragon James Caan will be chairing the scheme and it will be administered by groups experienced in working with young people.
Will you be applying for one of these loans, or know someone that could benefit? Give us your thoughts in the comments below.
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May 28, 2023
business