Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Lord Young: Remove start-up loans age cap

by
15th May 2013
Save content
Have you found this content useful? Use the button above to save it to your profile.

David Cameron's enterprise adviser Lord Young has urged the government to make its loans scheme for new companies open to applicants over the age of 30.

As reported in our sister publication BusinessZone.co.uk, who also conducted a live webchat on business growth from 10 Downing Street this week, the idea is among a number of recommendations in a new report: Growing your business: a report on growing micro businesses.

The Start-Up Loans initiative was launched last autumn and has since lent 3,786 loans worth £16m. Despite getting off to a slow start, a total of £117.5m is available until 2015.

Other Lord Young recommendations include:

  • Abolition of pre-qualification questionnaires for public sector contracts under €200,000
  • £30m Growth Voucher programme to encourage more small firms to get specialist help
  • New 'Supporting Small Business Charter' and award scheme to incentivise business schools to help SMEs grow
  • Enabling the private sector to provide small business advice on the government's GOV.UK website
  • Better marketing of government schemes to support new and developing businesses

Lord Young said the report endeavours to help and encourage all those new firms to now take on their first employees and grow.

“Growing our smallest businesses would transform our economy – they are the vital 95%” he said. “If just half of the UK's micro businesses took on an additional member of staff, unemployment would be reduced to almost zero. We need to raise the aspirations and confidence of these businesses and give them the tools to grow.”

The report has already caused controversy after the Trades Union Congress (TUC) criticised comments made by Lord Young about starting a business in a recession. “A recession can be an excellent time to start a business,” he said in the report.

However a Downing Street spokesperson later told The Observer: “Lord Young doesn't say a recession is a good time, he says it can be a good time to start a business, which is borne out by the statistics. “The TUC is deliberately misrepresenting his report to suit their political agenda.”

Adam Tavener of Clifton Asset Management welcomed Lord Young’s report, but disagreed with the view that it’s easier than ever to start a new business.

“This is largely because these companies are increasingly reluctant to access traditional forms of funding. Despite the money being available, it generally comes with extensive personal guarantees and other criteria which are just too onerous and restrictive for start-up companies,” he said.

Tavener added: “Amongst the case studies highlighted in Lord Young’s report is Alago, manufacturers of heated gloves, which would not have achieved success and sustainability without its entrepreneurial owner, Tony Curtis, being able to back his own business by using pension-led funding to finance the company.”

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.