New Start Up Loans Drive an Increase in UK Entrepreneurship

New Start Up Loans Drive an Increase in UK Entrepreneurship

by David Tamplin on 5 Nov, 2013

“There’s a business in everyone” is the motto for the StartUp Loans fund, the scheme introduced mid-2012 to encourage young people to explore self-employment. The government funded StartUp Loan originally only catered for 18 – 24 year olds but as of January 2013 the offer is extended to those aged 18-30 and funding has been increased. The initiative invites young aspiring entrepreneurs to apply for up to £2,500 in funding to start their own business. The money can be used for things like advertising, purchasing stock, renting premises or buying company assets.

Anyone who receives a loan is also backed up by the support of a mentor to guide them through the ups and downs of running their own business. This new scheme is part of the government’s initiative to decrease unemployment amongst young people in the UK, which has risen to record highs.

Initiatives like the StartUp fund, charities such as The Princes Trust and the rising awareness of support websites like Business Link are all resources contributing to a new wave of young entrepreneurs. Many disillusioned job seekers have starting thinking of alternative ways to earn a living and the most obvious way to do this is self-employment. The baby boomer generation have also become more entrepreneurial as they too have found themselves hit by redundancy and a lack of job vacancies.

Exemplary British Entrepreneurs

Recent TV advertising campaigns for Google encapsulate the British entrepreneurial spirit perfectly. The first advert in the series features now 22 year old Jamal Edwards, who is reported to be worth £6 million as a result of growing his online TV channel SBTV from filming friends on a mini camcorder to hanging out with international superstars like Rihanna.

Another of the Google TV advertisements features The Cambridge Satchel Company and founder Julie Deane. Julie started her business from the kitchen table, encourage by her children after making them a satchel because she couldn’t find the style she wanted in the shops.

Both the above entrepreneurs are a great example of how a small idea can grow unexpectedly, and that when someone does what they love for work, it can certainly reward them in more ways than one.

Ready Made UK Business Opportunities

For budding entrepreneurs who lack an idea as a starting point but are willing to put in hard work and a small investment, ready-made businesses offer a real opportunity for self-employment and are becoming more common. The “get rich quick” schemes that cropped up in the 90s have begun to fade away now that everyone knows they are to be avoided, and in their place there are some fantastic UK and international franchise opportunities that also provide mentor and support and a tried and tested business plan.

There are always pros and cons to being self-employed, but as the recession has made employment less beneficial at some large companies – such as pay freezes, withdrawal of bonuses and risk of redundancy, it’s no wonder that David Cameron has allowed up to 45,000 people the chance to start their own business in the UK.

About the Author

David Tamplin

David Tamplin has been writing for Uk Money Market for 3 years and is the current editor of the site. He has an insurance background and achieved his ACII professional insurance exams in 1993.