I was recently interviewed for my opinion on loans for start-ups. Below is what I had to say about the new scheme.
Mitch Vidler is an entrepreneur who set up online shopping service Slingshot. He helps students trying to start their own businesses through a Lancaster University Students Union project.
“It’s great that there is funding out there for young entrepreneurs if they go through the right steps.
“However, the process can be painfully slow. It has to be faster and the red tape has to be ripped up. I know first-hand how frustrating delays can be. It should be about getting this backing to potentially great businesses as quickly as possible.
“If your business plan is deemed ‘robust’, you typically receive £2,500 under the Start-up scheme, which can be repaid over five years at a relatively low interest rate.
“Students and young people are at an ideal time in life to start businesses because of their low individual living costs.
“When that is the case, it may not seem much, but £2,500 can go a long way.
“As I tell the students at Lancaster, it is about seeing how you can make that £2,500 become £5,000 and then £10,000. If you can’t do something with £2,500, you shouldn’t really be in business.”