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Posted: Fri 16th Feb 2024
The UK government's flagship funding initiative for small businesses has now provided £100m to young entrepreneurs aged 18-24.
Launched in 2012 following an idea by former business and trade secretary Lord Young, Start Up Loans has given 15,000 loans to Generation Z founders.
A third of recipients aged 18-24 were unemployed before accessing the funding to start a business, while 39% of loans have gone to female business owners and 24% to entrepreneurs from ethnic minority backgrounds.
Among young entrepreneurs receiving the finance, the most popular industries include retail (£8.5m), hospitality (£5.8m) and arts and entertainment (£2.5m).
Small business minister Kevin Hollinrake said:
"Every large firm started off as a small business and today's aspiring young entrepreneurs could be the next success story. I urge them to explore how a Start Up Loan could launch their ambitions today."
Cory Hibbin, aged 20, took out a £14,500 loan to launch Techie Services, which provides security solutions for residential clients, estates and corporate buildings. He said:
"I'm not the sort of person who can take on learning from behind a desk so I left school at 16 to do an apprenticeship with a local IT consultancy company. While working there, I was working on the side in the evenings and at the weekends.
"Having been there for four years, I felt like I had gained enough experience to start my own company, which is when Techie Services began. I started with one large client, who quickly recommended me to other businesses and individuals, so I took on five new clients in our first six weeks.
"The money from Start Up Loans was invaluable in the success of the business. I used it to buy tools for installations as well as supplies for the office.
"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. I urge anyone 18 or above to look into the finance options available to them if they need a hand getting off the ground."
Last September, Start Up Loans said it has lent more than £1bn in total.
By the time of the announcement, funding had been provided to 105,109 businesses, at an average of £9,547 per loan.
