£80m scheme for budding young entrepreneurs launched

The StartUp loan initiative will provide young people with personal support to help develop business plans and take part in relevant training.

If their business plans are approved, young participants will be able to access financial support in the form of a loan of around £2,500, with a repayment period of up to five years.

The government hopes the cash will be used to start more than 30,000 new businesses.

StartUp loans will be administered by a range of organisations that have experience in working with young people, including the Prince’s Trust.

These delivery partners will be responsible for providing support, assessing young people’s business plans, for making the loan and for managing repayment.

Dragons' Den entrepreneur James Caan has agreed to chair a new body to oversee the allocation of funds, and to work with delivery partners to make sure that young people gain the maximum benefit from the support and finance on offer.

Prime Minister David Cameron said StartUp loans are a fantastic opportunity for young people to turn a spark of an idea into the "next global brand".

“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,” he said.

Business and enterprise minister Mark Prisk said giving young entrepreneurs the tools they need to start a business is an essential part of boosting the UK economy.

“By investing in young people now, we have a great chance of creating the entrepreneurs who can become tomorrow’s success stories,” he said.

“However, it is not just about money. It is about creating the whole package for young entrepreneurs; training, mentoring, business planning and help to access finance.”

Young people looking for support and finance through the StartUp loan scheme can register at www.startuploans.co.uk.