The Rise of Young Entrepreneurs: Over £100 Million in Start Up Loans Secured

Since 2012, young business owners aged 18-24 have remarkably secured £100 million in financing from the Start Up Loans scheme. This impressive achievement has positioned the North West’s young entrepreneurs as the recipients of the highest volume of loans outside of London, with over 15,000 loans granted to applicants under the age of 25 by the British Business Bank scheme.

The North West has notably received the highest volume of loans outside of London, with 1,992 loans being granted, followed closely by the West Midlands with 1,591 loans and the South East with 1,291. In contrast, London has been granted a total of 3,099 loans since 2012. Among the enthusiastic young recipients of these loans, the most popular industries to launch a business in include retail (£8.5m), hospitality (£5.8m), and arts and entertainment (£2.5m).

Richard Bearman, Managing Director of Small Business Lending at British Business Bank, has expressed his admiration for the determination and motivation displayed by young entrepreneurs. He has labeled the £100 million funding milestone as a significant landmark and a testament to the hard work of the Start Up Loans programme.

The Start Up Loans programme, a part of the government-owned British Business Bank’s efforts to improve finance markets for smaller businesses, enables individuals to start or grow their businesses by allowing them to borrow up to £25,000 at a fixed interest rate of 6% per annum, with the option to repay the loan over one to five years. Furthermore, the programme provides 12 months of free business mentoring, offering invaluable support to aspiring entrepreneurs.

In support of these efforts, Small Business Minister Kevin Hollinrake has encouraged young entrepreneurs to explore how a Start Up Loan could kickstart their ambitions. He emphasized that every large firm started off as a small business and that today’s aspiring young entrepreneurs could be the next success story. He also highlighted the government’s commitment to backing the next generation of business leaders with over £100 million in government-backed finance through the British Business Bank and the Help to Grow campaign, assuring that this is just the beginning.

This significant achievement not only celebrates the entrepreneurial spirit and determination of young individuals but also serves as a testament to the opportunities and support available to budding business owners. The rise of young entrepreneurs signifies a promising future for the business landscape, with the potential to drive economic growth and innovation. The success of the Start Up Loans scheme is paving the way for a new generation of business leaders, and it’s truly inspiring to witness the impact of such initiatives on nurturing the entrepreneurial dreams of the young generation.