In a recent blog we discussed how age is no barrier to starting a business with entrepreneurs in their teens up to the nineties starting businesses. The government has obviously been listening, well in part, as the prime minister, David Cameron, is believed to be looking at funding young people looking to set up in business using a student loan style scheme. The idea was first proposed by Sir Richard Branson as part of the Virgin Media Pioneers Control Shift campaign.

Students loans, however, have been surrounded in controversy in recent years with students currently able to obtain loans of up to £9,000 a year to cover tuition fees and £7,675 for maintenance with lower interest rates then comparable loans. Many students are leaving higher education with thousands and thousands of pounds worth of debt which potentially takes them many years to pay off.

So, how would an entrepreneur's loan work? What we don't want is young people getting themselves into more debt that they potentially can't pay off, but on the other hand with access to finance so difficult this may prove the only option for many looking to start up their own business. Provision of the loans will need to be carefully considered as will the terms of the loan. It is positive news that the government is considering alternative funding options aimed solely at the young, but we have to also ensure they have the support required to ensure their business succeeds and that they don't simply end up further in debt.

Starting up a business? With bespoke outsourcing solutions available Paper Mountain Solutions is able to provide business owners with an outsourcing solution tailored to the specific needs of their business from telephone call handling to bookkeeping and credit control. Paper Mountain Solutions understands the needs of businesses looking to outsource and are happy to advise on how they can you. Get in touch today.

Image: Ambro / FreeDigitalPhotos.net