Tuesday, August 16, 2022

Loans scheme delivers £6.9m to help unemployed East Midlands people start a business

Start Up Loans, part of the British Business Bank, has set out its commitment to unlock the talent of thousands across the UK by helping them to start their own business.

The disruptive impact of Coronavirus on the UK’s economy and traditional working patterns has catalysed many to reconsider their careers, whether because of additional time to reflect during lockdown, furlough or a change in employment status.

Since 2012, Start Up Loans has delivered over 1,650 loans to unemployed people in the East Midlands, worth over £6.9m. Since 2012, 36% of people to have received Government-backed funding in the region were unemployed. Between 1 March 2020 and 31 March 2021 £836,632 has been secured by unemployed people to start up in the region.

Of the 80,000+ Start Up Loans recipients across the UK since 2012, a third (31%) were unemployed at the time of application. Start Up Loans data also indicates that the scheme is effective in enabling young entrepreneurs to start up a business, with millennials representing more than half (54%) of all previously unemployed loan recipients since 2012.

The Start Up Loans scheme has also seen this trend continue with the youngest generation of entrepreneurs, with double the number of Gen Z (18-24 year old) applicants using the scheme as a route out of unemployment in 2020 compared to 2019.

The Start Up Loans scheme was initially set up as the UK economy was recovering from the 2008 credit crisis, with a mission to make business ownership a viable career for individuals who would struggle to raise finance.

Richard Bearman, Managing Director, Start Up Loans, said: “Start Up Loans is uniquely positioned to drive the nation’s investment in creative, entrepreneurial talent of any age, thanks to our extensive network of delivery partners and support services. As well as a loan, we support individuals with the practical steps they need to take to begin their own enterprise from writing business plans, accounting and marketing, as well as access to learning with partners such as The Open University.

“It is paramount that we do everything to empower the next generation of young working talent, who have an important part to play in unlocking the UK’s economic recovery, by giving them every chance to succeed, whatever their circumstances. Unemployment can have a catastrophic impact on an individual’s financial security, self-confidence and ability to apply for finance from lenders, and the support provided by Start Up Loans can be of particular use to younger, less experienced business owners.”

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