StartUp Loans launched to kick-start young businesses

A new loan scheme to provide entrepreneurial 18 to 24 year olds with the funds they need to get their business started has been launched.

The Government backed StartUp Loans form part of the StartUp Britain campaign, provided by entrepreneurs to give entrepreneurs the support they need to succeed in business.

StartUp Britain has been working with Lord Young and the Government Department for Business and Skills (BIS) to launch the loans of up to £2,500 in a bid to get Britain in business.

The loans will come with a repayment period of five years, and a mentor will also be supplied to help the recipient with their business plans and provide ongoing support. According to StartUp Britain, it is a lack of finance and the contacts required to give it a go that puts many people off starting up a business.

David Cameron commented on the launch of the scheme this week, saying: "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.

"StartUp 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 spark of an idea into the next global brand."

According to Lord Young, who has authored a report into SMEs titled 'Make business your business', the UK would have 900,000 more businesses if we had the same rates of entrepreneurship as the US.

Commenting on the launch of StartUp Loans, Lord Young said: "The StartUp Loan programme is designed to help you create a business plan, and then give you a loan to get started. You will get continuing support from your mentor, and your future will be in your own hands. The limits of your business will be up to you."

The Government is also running the Business in you campaign this year, highlighting the support available for startups and growing businesses, as the UK attempts to enterprise its way out of the double dip recession.