We keep hearing how we are a nation of entrepreneurs and that more and more young people are trying to set up businesses, but in reality how much funding is there really out there for these budding entrepreneurs. We've frequently reported on the lack of funding from banks, but there are other options out there and new suggestions constantly being thrown about. Richard Branson, for example, has put forward the idea that young people who do not go to university could use their student loan to start a business instead. This would give them access to much needed finance, but with the low interest rates and long payback terms that undergraduates receive with the student loan system.
You may have come across the Get Mentoring scheme, which aims to create a network of thousands of business mentors that will give SMEs access to the wealth of experience from entrepreneurs. This is all well and good, but advice is of no use if businesses haven't got the funding to get started in the first place. So, it has been suggested this idea of mentoring be used in a different manner with the help of large corporations.
With headlines earlier in the year like this: "Business Links to close by November as government unveils new support measures" it's no surprise that there has been a great deal of confusion about the future of Business Link. If you had read on in this particular story published on Business Zone you would have discovered that in actual fact: "Whilst the regional Business Link advisory service will close on the 25 November 2011, the Business Link website is being significantly enhanced and will provide improved, comprehensive support to businesses. New online services will be launched in November designed to help you start, grow and improve your business."
It has apparently proved successful during the trial run in Merseyside this year, but will the Government’s New Enterprise Allowance (NEA) prove itself as effective nationwide? The scheme works with the long-term unemployed (receiving Jobseekers Allowance for at least 26 weeks) to provide them with the opportunity to start their own small business by offering access to a business mentor who will work with entrereneurs to put together business plans. They will also receive a £65 per week stipend for the first thirteen weeks (reducing to £33 per week for the subsequent thirteen weeks) and in addition the entrepreneurs will have access to a £1,000 business loan.