South East's young entrepreneurs benefit from over £10M from British Business Bank's loan scheme
Young entrepreneurs in the South East have benefitted from more than £10 million of funding from the Start Up Loans programme from the government-owned British Business Bank, new figures show.
Since the programme launched in 2012, more than 1,290 Gen Z businesses (including those started by 18 to 24 year-olds) have benefitted in the South East.
READ MORE: British Business Bank launches £200 million fund to support South West's small businesses
Across the nation as a whole, Start Up Loans has delivered more than 15,000 loans worth over £100 million to applicants aged 18 to 24.
Under the programme, people can borrow up to £25,000 at a fixed interest rate of 6% a year, to be repaid over one to five years. The scheme also includes 12 months of free business mentoring.
"It's amazing to see people in their late teens and early twenties with such ‘can-do’ attitudes and motivation to achieve success in working life," said Richard Bearman, managing director of small business lending at the British Business Bank.
By UK region over the last 12 years, in London 3,099 loans have been made to 18-24 year olds, worth over £23.3 million. In the South West, 1,009 loans were handed out for around £7.5 million.
In the South East, Crawley was shown to be the most entrepreneurial constituency with loans to young businesspeople worth £361,141 handed out, followed by Chichester (£287,700) and then Dartford (£260,950).
Of those to receive a Start Up Loan across the UK, the most popular industries included retail (£8.5 million), hospitality (£5.8 million) and arts and entertainment (£2.5 million).
One recipient of a Start Up loan was Cory Hibbin, aged 20, who launched Hastings-based Techie Services after taking out a loan in March last year of £14,500, describing it as the "best decision" he has ever made.
The firm offers security solutions for residential clients, estates and corporate buildings.
"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," said the young entrepreneur.
"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," he added.
"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."
Kevin Hollinrake, the government's small business minister, 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.
"Through the British Business Bank, and the Help to Grow campaign, we’ve backed the next generation of business leaders with over £100 million in government backed finance and we’re not stopping there."
The Start Up Loans programme has now launched an advertising campaign to help students access information about the scheme and encourage them to turn their business dreams a reality.
The campaign is running across 54 UK cities. Students can scan the QR code on posters and screens around their college and university campuses and surrounding area to access information.
