Milestone Achieved: £100m Issued to Young Entrepreneurs Through Start Up Loan Scheme

In an impressive feat, a staggering £100 million has been allocated through the Start Up Loan Scheme to support the next generation of business leaders. Despite the persistent challenges in obtaining funding for small and medium-sized enterprises (SMEs), this achievement serves as a testament to the resilience and innovation of young entrepreneurs.

Since its establishment in 2012, the Start Up Loan Scheme, financed by the British Business Bank, has facilitated the allocation of 15,000 loans to founders aged 18 to 24, resulting in a total funding of £100 million. This milestone holds particular significance in the current economic climate, marked by stricter lending criteria from traditional banks, prompting SMEs to explore alternative sources of funding.

The move away from traditional banks as the sole source of funding has led SMEs to consider financing options offered by alternative lenders. A recent survey by fintech firm Iwoca found that 71 per cent of brokers are now presenting their clients’ applications to these alternative lenders, indicating a growing trend in SME financing.

One individual who has benefited from the Start Up Loan Scheme is Cory Hibbin, a 20-year-old entrepreneur who received a £14,500 loan to launch his business, Techie Services. Encouraging others in similar situations, Cory stressed the importance of exploring available finance options when in need of a helping hand to initiate a business. He stated, “While it might seem a big leap of faith to some people, you can’t let the fear of failure stop you from trying in the first place.”

Reflection on this substantial milestone, Richard Bearman, the managing director of Small Business Lending at British Business Bank, emphasized the impact of the Start Up Loans in empowering aspiring entrepreneurs like Cory. He highlighted that the milestone is a testament to the commitment of the Start Up Loans program in ensuring that individuals with promising business ideas, regardless of their age, have access to the necessary funding to bring their visions to life.

British Small Business Minister Kevin Hollinrake also commented on the news, noting that reaching the £100 million funding milestone is not the end of efforts to support budding businesses. He emphasized the potential of today’s aspiring young entrepreneurs to become the success stories of the future and urged them to explore how a Start Up Loan could catalyse the realization of their ambitions.

In conclusion, the achievement of allocating £100 million through the Start Up Loan Scheme to young entrepreneurs is a testament to the resilience, creativity, and determination of the next generation of business leaders. The success stories of individuals such as Cory Hibbin underscore the potential unleashed by providing accessible funding to aspiring entrepreneurs. As the landscape of SME financing continues to evolve, the milestone serves as a beacon of hope and opportunity for the future of entrepreneurial ventures.