News story

Start-up loans help 2,000 young entrepreneurs

Prime Minister praises successful start-up loans scheme which gives young entrepreneurs the finance and support to strike out on their own

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The Start-Up loan scheme has exceeded expectations as 2,000 aspirational young entrepreneurs have now received support to help get their business venture off the ground, in a boost to growth and the UK’s efforts to get ahead in the global race.

Around 1,000 new businesses have been helped in the last month alone, says The Start-Up Loans Company, which administers the scheme.

The scheme, which helps young people get their business ideas off the ground with a loan of typically around £4,500 and mentoring support, demonstrates the strong demand amongst 18-30 year olds for self-employment.

The scheme has already reached its £10m pilot spend following high demand, and an immediate £5.5m injection of funding was approved yesterday in Parliament to fulfil its pipeline of young businesses until the end of the month. The government has made £117.5m available to fund the Start-Up Loans scheme up to 2015.

Prime Minister David Cameron said:

Start-Up loans are now helping thousands of aspiring young entrepreneurs get the finance and support to strike out on their own and launch their own business. The success of this scheme shows that young people have got the ideas, the ambition and sheer commitment to get ahead - and it is by backing them, and backing their aspirations that we will be able to compete and thrive in the global race.

Budding entrepreneur and mother of two, Alissa Koopal, 26 from Liverpool has used her loan to help launch her company, Izzy Melody, which produces innovative, eco-friendly baby products manufactured in the UK.

After making the difficult decision to take the plunge and make my business concept a reality, my loan application was rejected by the bank so didn’t think I’d ever be able to establish Izzy Melody.

Alissa was introduced to the Start-Up Loans scheme by her Delivery Partner, Merseyside Investment Fund.

Within six days of applying for a Start-Up Loan, I was granted the £2,500 I really needed to launch my business and assigned a mentor who has provided me with vital guidance and support.

Published 13 March 2013