Start Up Loans Set to Unlock Youth Potential
The Start Up Loans scheme encourages young people thinking about their career options to start their own business and become their own boss following the pandemic.
Start Up Loans was initially set up as the UK economy was recovering from the 2008 credit crisis, with a mission to make business ownership a viable career for individuals who would struggle to raise finance. Building on a nine-year track record of success, the scheme is set to play a vital role as our economy starts to rebuild after the impact of Covid-19, providing funding and support for people starting up their own business.
The scheme has already been successful with the youngest generation of entrepreneurs, with double the number of Gen Z applicants using the scheme as a route out of unemployment in 2020 compared to 2019 and millennials making up more than half of all previously unemployed loan recipients since 2012.
Richard Bearman, Managing Director of Start Up Loans said: â€œStart Up Loans is uniquely positioned to drive the nationâ€™s investment in creative, entrepreneurial talent of any age, thanks to our extensive network of delivery partners and support services. As well as a loan, we support individuals with the practical steps they need to take to begin their own enterprise from writing business plans, accounting and marketing, as well as access to learning with partners such as The Open University.
â€œIt is paramount that we do everything to empower the next generation of young working talent, who have an important part to play in unlocking the UKâ€™s economic recovery, by giving them every chance to succeed, whatever their circumstances. Unemployment can have a catastrophic impact on an individualâ€™s financial security, self-confidence and ability to apply for finance from lenders, and the support provided by Start Up Loans can be of particular use to younger, less experienced business owners.â€
Small Business Minister Paul Scully said: â€œThe Governmentâ€™s Start Up Loans programme has a phenomenal track record of backing budding entrepreneurs across the UK, having helped more than 80,000 people to start their own business.
â€œAnyone out there looking to strike out, seize opportunities and build something new can benefit from the funding and support which the programme provides. This campaign will be pivotal to our ambition of making the UK the best place in the world to start and grow a business and help us build back better from the pandemic.â€
James Talbot, Co-Founder of Pobi Bakery, said: â€œAt the start of the pandemic my partner, Jake, was made redundant and we decided that it was time to start working for ourselves. We took out a loan of Â£20,000 from Start Up Loans in September 2020 and have never looked back.
â€œThe process of becoming unemployed is stressful and full of uncertainties, but the fact that everyone in the UK has access to schemes like Start Up Loans should be cause for optimism in the current economic environment. Despite all the challenges thrown at the retail industry throughout the last year, we have managed to employ 3 members of staff, open a second site, and are forecasting a turnover of Â£250,000 in the next financial year. Itâ€™s been a huge journey for both of us."
The disruptive impact of Coronavirus on the UKâ€™s economy and traditional working patterns has catalysed many to reconsider their careers, whether because of additional time to reflect during lockdown, furlough or a change in employment status. Hopefully this programme will give young entrepreneurs the help they need to become their own boss.