Everything You Need To Know:
Young Entrepreneurs In The UK A Growing Nation Of Entrepreneurs
The UK is one of the best places in Europe to start up a business, with over 1000 small businesses launching each and every day. Whilst starting up a business of your own is undoubtedly a challenge, and can be particularly daunting when you are still of a young age, many young people are opting to go down the entrepreneurial route, seeking a career that offers them both professional freedom and huge potential for financial success.
In 2016 a total of 181,000 young people between the ages of 16-24 were classified as self-employed workers, a figure which has been further on the rise in recent years. If you have an innovative business idea, then now is without a doubt, the time to implement it. Huge technological advancements over the past decade have proven that there is more scope for new business models than ever before. Our business loans for young entrepreneurs can help you to get your idea off the ground…
The United Kingdom is becoming increasingly entrepreneurial, with its greatest strength proving to be its ability to provide unique products or services that are not currently offered by other businesses in the same market. Younger generations are clearly demonstrating enthusiasm for entrepreneurship, with over 20% of young people aged between 15 and 18 interested in setting up their own business.
In 2006 there were 145,104 companies founded by young people, by 2013 this figure had jumped to 247,049. It has been found that fewer young entrepreneurs are likely to co-found. Statistics show 66% of young people launched their firm with a partner in 2006, dropping to 42% in 2013. Furthermore, whilst the “baby boomer” generation own 3.5 companies on average, the millennial generation averagely own 7.7 businesses, demonstrating the drive and passion of young entrepreneurs. Young people are arguably much bolder in their pursuit of entrepreneurial success than past generations, willing to push their business ideas to their very fullest potential…
Becoming A Business Owner At A Young Age
Being older doesn’t necessarily benefit you when it comes to starting up a business. It is often assumed that someone who is older will be much wiser and possess greater industry insight, but anyone of any age can invest time into thorough market research.
Unfortunately, the key disadvantages that young business owners tend to face are age related prejudices and a lack of funding, due to having had fewer years to acquire personal savings. Prejudices of course can be dispelled, and aspiring entrepreneurs should not be held back from seeking and securing the funding their business ventures require.
Young entrepreneurs tend to possess the energy and enthusiasm which is vital to succeed as a business owner, and are much more easily able to adapt their skill set to different circumstances and situations. Young people also tend to have a better understanding of social media and current trends, and are able to utilize them well to the benefit of their company.
Famous UK Young Entrepreneurs
Within the UK, one of the most famous young entrepreneurs is Lord Alan Sugar, who came from a working class family in London, and founded the consumer electronics company Amstrad in 1968, at the age of just 21. In 2007, he sold off his remaining interest in the company for £125 million, and his overall estimated net worth sits at around £1.15 billion.
Grace Wales Bonner is the founder of the London-based menswear company Wales Bonner, which was established in 2014. Just one year after the brand was founded, Grace was awarded Emerging Menswear Designer at the British Fashion Awards, and in 2016 she received the LVMH Young Designer Prize. The company has now launched a women’s wear range, and is tipped has one of the most promising newcomers to the fashion world.
Rachael Flanagan is an inspiring UK entrepreneur, who at the age of 18 decided University wasn’t for her, and instead started a cleaning business, despite failing her business A-level. After starting out by single-handedly advertising her business with £20 worth of black and white flyers, her company now employs over 250 people throughout Bristol and Cardiff.
Business Loans For Young Entrepreneurs Funding Options
When it comes to starting up any sort of business, good working capital is essential to ensure operations run smoothly. Reduced cash flow can seriously hinder your businesses performance, potential for growth and long-term success. Many younger entrepreneurs tend to lack personal capital and so will need to seek out an alternative source of funding.
Since the economic crash of 2008, it has proven to be increasingly difficult for small and new businesses to secure funding via the banks, and especially challenging for young entrepreneurs, as they are viewed as “high risk”. Fortunately however, there are a number of alternative lenders who retain faith in small companies and young business people, and are able to financially support them in their business ventures. Amongst some of the most popular alternative funding options with young business owners are merchant cash advances, young entrepreneur loans UK, overdraft funding, business credit card funding, angel investors and crowdfunding.
Government Funded Schemes
Government funded schemes are available for young entrepreneurs between the ages of 18 - 24. Through this scheme, you could look to borrow a start-up loan up to £2,500, with a repayment period of up to 5 years. Whilst this is a relatively small sum, it provides your business venture with enough financial support to initially get set up.
By choosing this option you will also benefit from being able to access support and training, to help prepare you for the launch of your business and any challenges you might bump into.
The Prince’s Trust
The Prince’s Trust is a charity organisation set up by The Prince of Wales in 1976, offering business funding to young entrepreneurs through its Enterprise Programme. The programme offers loans, training and mentoring to assist young people aged between 18-30 to set up their own business. The entrepreneur loans offered can provide up to £5,000 of funding, and in certain circumstances people can be eligible for business grants.
At SME Loans, we provide small business loans especially designed to meet the needs of young business owners, and young people with entrepreneurial aspirations. Our business loans for young entrepreneurs can provide you with an amount from £1,000 to £500,000, providing your company with the financial support and assistance it needs, when it needs it most.
The application process is quick and simple, and can be completed entirely online. Once your application has been approved, you can expect to see the funding in your account within as little as 24 hours. Repayments are made in monthly installments at a pre-agreed interest rate.
Merchant Cash Advance
You can conveniently look to borrow an amount between £5,000 and £500,000 through our merchant cash advance product. With a merchant cash advance, you can receive the money upfront and then pay it back as a small pre-agreed percentage of your business’ future debit and credit card sales. With this option, you will be able to keep 100% of the money made through cash sales. As with our business loans, the merchant cash advance application form takes just minutes to complete and from approval you can expect to see the money in your account in just 24 hours.
Is My Business Eligible?
Most businesses should be eligible to secure funding with us. To find out if you are also eligible, check that your business:
- Is registered in the United Kingdom
- Has been actively trading for a minimum of 6 months
- Has a monthly turnover or monthly card sale transactions of at least £5,000
- Has a business owner over the age of 18
- Is a limited company and/ or a sole trader
How To Apply
Step 1: Click to apply. First of all we will ask you to provide us with the following details:
- The name of your business
- How long your company has been trading
- Your business’ average monthly turnover
- The amount you are looking to borrow
Step 2: The next step involves disclosing your personal details. We will need:
- Your title, first name and surname
- Position in the business
- Contact details
Step 3: Take time to thoroughly read through our terms and conditions and click ‘get my quote’. From here your application will be reviewed by one of our commercial directors, who will help find the best lender for your young entrepreneur loan UK.
Step 4: Please expect a call and email from one of our dedicated account managers to discuss the terms of your loan agreement.
Step 5: Carefully read through the terms of agreement, then sign the relevant documentation and return it to the lender. You will then be able to access the funds in your account in just 24 hours.