Scheme which has loaned £6.9m vows to help more young people start a business
Start Up Loans, part of the British Business Bank, has set out plans to help thousands of people start their own business in the wake of the destruction wrought by the pandemic.
Since 2012, Start Up Loans says it has delivered over 1,650 loans to unemployed people in the East Midlands, worth over £6.9m. Some 36% of people to have received Government-backed funding in the region were unemployed.
Of the 80,000+ Start Up Loans recipients across the UK since 2012, a third (31%) were unemployed at the time of application. Start Up Loans data also indicates that the scheme is particularly effective in enabling young entrepreneurs to start up a business, with millennials representing more than half (54%) of all previously unemployed loan recipients since 2012.
The Start Up Loans scheme has also seen this trend continue with the youngest generation of entrepreneurs, with double the number of Gen Z (18-24 year old) applicants using the scheme as a route out of unemployment in 2020 compared to 2019.
The Start Up Loans scheme 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.
Richard Bearman, managing director, Start Up Loans said: “Start Up Loans is uniquely positioned to drive the nation’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.
“It 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 UK’s economic recovery, by giving them every chance to succeed, whatever their circumstances. Unemployment can have a catastrophic impact on an individual’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.”
Small Business Minister Paul Scully said: “This Government’s Start Up Loans programme has a phenomenal track record of backing budding entrepreneurs, having helped more than 4,610 in the East Midlands to get off the ground.
“I would encourage aspiring entrepreneurs in the East Midlands, whether they’re young people just getting started, or experienced pros looking for a fresh start, to explore the fantastic support available from the British Business Bank.”
