West Midland entrepreneurs hungry for start-up loan scheme

MORE businesses in the West Midlands have opted to capitalise on the Government’s Start-Up Loans scheme than anywhere in England outside London, latest figures show.

Data from the Department for Business, Innovation and Skills shows that of the total number of loans awarded, 14% were to businesses setting up in the West Midlands.

London heads the list at 33%, and then after the West Midlands comes the South East (13%), the North West (9%), South West (8%), East of England (7%), East Midlands (6%), Yorkshire (5%) and North East (5%).

The £112m scheme, predominantly aimed at young entrepreneurs, has now supported its 1,000th business – the number having doubled in the past five weeks alone.

Prime Minster David Cameron said the appetite for the scheme suggested entrepreneurs were eager for their chance to set up in business.

“I am pleased that Start-Up Loans are helping more and more entrepreneurs who start small but think big transform their ideas into viable, growing businesses,” he said.

“I am on the side of people who want to work hard and get on in life, and it is by backing aspiration and the businesses of tomorrow, as well as the businesses of today, that we are equipping the UK to compete in the global race.”

The Start-Up Loans initiative was created to give young people a boost getting their businesses off the ground. Applications have also more than doubled in the last month, from 3,000 to over 8,300 in January.

Business Minister Michael Fallon said he was keen that more young people took advantage of the scheme.

“The UK has a proud history of innovation and enterprise and this scheme is helping to unleash that entrepreneurial streak for the next generation.

“But we are in a competitive world and there is still more to do. I want as many 18 to 30-year-olds to benefit from Start-Up Loans as possible – we need this momentum to be just the tip of the iceberg.”

The programme is available to anyone between the age of 18 and 30 whose business is in England. It consists of a low cost loan and free mentoring.

The businesses helped so far cover a wide range of sectors including fashion, music, food, e-commerce, digital and fitness.

Former Dragons’ Den star James Caan is the chairman of Start-Up Loans. He said the momentum developed was very encouraging.

“In the beginning, we started 500 businesses in five months. We have now achieved 500 businesses in five weeks. This goes to show that people across the country have the passion to be entrepreneurs, but just need a helping hand and that’s what Start-Up Loans is all about,” he said.

He said if each of the businesses started found employment for two or three people then that could ultimately see 100,000 new jobs created.

However, he warned there were still challenges ahead.

“We have to raise awareness of Start-Up Loans throughout all of England so every young person knows about this programme. We have to make sure every young person realises the help and support we offer means they can turn their ideas into an income,” he said.