Thank you for your support of young entrepreneurs and development of the Startup loan scheme. With banks less readily looking to invest in new business the government stepped up and provided £151 million to the Startup loan scheme, aimed at helping start 30,000 new businesses. So far 15,777 Startup loans have been dished out, totaling £80million+.
But, you're doing it wrong...
This is all very nice but I've noticed the ease that startups have been getting loans and to be honest I think we're masking the real issue here. It's not how many new startups that are created that's the important statistic.
It's how many new startups survive! Past the 1st year, 2nd year, 3rd, 4th, 5th etc...
It seems more and more of a marketing exercise to show how many new businesses the government is reasonable for creating as if that's what is important. When really it's all about the support they get to ensure they survive and thrive.
With the Startup loans scheme lowering the barrier to entry for new startups it can also mean that some just take the opportunity to start a business because it's seems easier than getting a job in the current climate. It does not necessarily mean entrepreneurship is for them, it really isn't for everyone.
These entrepreneurs need personal development support as well as advice and training around the business and product/service side of their business. Top mentors, access to networks and practical workshops are some of the most valuable assets for a new business. Passionate entrepreneurs that can lead, inspire and manage a team is also very important for growth.
I'm starting a startup incubator for 18-25 year olds to offer the added value that will help develop young entrepreneurs and London's next high growth startups. There needs to be a greater focus on this. If you want to learn more and even own a part of my company you can find out more here: https://www.seedrs.com/startups/incubusldn
We will be offering our teams the chance to take out a startup loan, but we'll be offering a 3 month programme including mentorship, workshops and training sessions, resources and access to a large network. we even offer an optional 3 month work placement in a local startup.
Remember these aren't grants or equity based finance, these are loans. The startup loans need to be paid back. I wonder how many of these loans will be written off as bad debt if they can't be paid back by the entrepreneurs with businesses that are failing or failed.