Budget 2012 reactions: The enterprise loans for young entrepreneurs pilot

Will enterprise loans provide the next generation of young entrepreneurs? Here's what you thought


In his Budget speech chancellor George Osborne stated that he would be considering the idea of introducing enterprise loans for young entrepreneurs, similar to the more traditional student loans for university-goers. While light on detail it prompted a flurry of responses from entrepreneurs and advisers.

Below are a selection of their views: 

Andrew Haigh, executive director, Entrepreneurs at Coutts:

“I remember my grandfather talking about the value of the university of life. The proposal to fund young entrepreneurs to build businesses instead of going to university may just perpetuate that age old wisdom.”

Stuart Morris, lecturer at the Centre for Entrepreneurship, Henley Business School:

“The programme of enterprise loans for young people will only be piloted later this year. There are no further details in the Budget documents. This is good news but probably of very limited impact for the moment.”

Daniel Price, co-founder, My1stYears.com – Daniel and co-founder Jonny Sitton set the company up two years ago upon leaving university:

“Many business concepts are never implemented due to a lack of available funds – so considering enterprise loans for young people to start up is a positive step. If it happens and I hope it does, this could give the economy a real boost and change the fortunes of young people struggling to source money to invest in a business idea.”

Michael Izza, chief executive, ICAEW (Institute of Chartered Accountants in England & Wales):

“Whilst offering young people grants to start their own businesses, we need to ensure they have the skills and financial acumen to make the most of such an opportunity. We need to ensure there is appropriate support and guidance available so they have every chance of success.”

Duane Jackson, CEO and founder, KashFlow:

“I welcome the consideration of enterprise loans. The economic downturn has blighted the prospects of many young start-ups in recent years, but for the UK to truly recover these small business are vital, and so must be encouraged. The National Loan Guarantee Scheme, as announced by the government yesterday, would reduce the cost of loans for growing businesses, but will not increase their availability. However, the enterprise loan initiative would do both, and therefore I strongly believe it has the potential to play a pivotal role in fuelling the UK economy.”

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