In a very difficult economy, starting up a business may be the last thing on an entrepreneur’s mind. Even with the best business idea, launching yourself into the rocky road of business and managing to stump up the funds for investment are difficult to say the least.
However, many organisations including the Government have decided to try and inspire young minds and business savvy people to set up a business and help the economy to thrive.
In fact, a scheme known as The Fiver Challenge has just been created which loans £5 to primary school children in an attempt to encourage them to set up their own business and make a profit.
The scheme was set up by Young Enterprise and the Department for Business as well as Sir Richard Branson’s Virgin Money. It is a nationwide competition to inspire young people rather than putting them off the idea of starting a business.
According to financial and economic experts, young businesses and SMEs are the future of Britain, and we must encourage them at all levels.
Michael Mercieca who is the chief executive of Young Enterprise commented on the scheme,
“The launch of the Fiver Challenge follows the news that the prime minister’s enterprise advisor Lord Young is to submit a report to David Cameron on how to boost enterprise and entrepreneurial spirit throughout a child’s education.”
Lord Young commented, “A society and an education system which fosters and values enterprise is vital if young people are to be fit and ready for the real world when they leave school, college or university…I will be looking across the education system to see what more can be done to boost our entrepreneurial spirit and will report back to the prime minister in the summer.”
But don’t worry, you don’t have to be 10 years old to start up a business. There are many other possibilities for business owner wannabes who need the capital for investment and to grow their business idea (and you’ll get a lot more than a fiver!)
For example, if you are new to business, a start up loan from a government backed scheme is a good way to get your feet off the ground. This kind of scheme also provides mentors to help give valuable business advice.
If you have set up a business but just don’t know how to expand it, you might choose something like a cash merchant advance to help. Cash merchant advances are a kind of business loan which helps SMEs that need extra funding to gain the working capital they need to refurbish, invest in marketing, train staff, and open up a second location and anything else. If you are a restaurant, for example, you can gain this valuable restaurant loan to expand your business and you only have to pay it back using a small percentage of your customer’s credit or debit card transactions when they pay for their meal. This makes it flexible, with no late repayment fees and no strict monthly sums of money to stump up.
Other solutions for small businesses and start ups can be found online and a business advisor may also be able to point you in the right direction.