New loan scheme for young entrepreneurs

David Cameron has just launched a new loan scheme to help young entrepreneurs start in business.

The new 'StartUp Scheme' is targeted towards bringing much needed funds to your business people between the ages of 18 and 24 who can prove that they have a strong business plan. The average loan amount is based around £2,500. This comes as a welcome gesture, given the lack of support from banks in this department.

According to Cameron's enterprise advisor Lord Young the UK could have up to 900,000 more businesses within our economy if we took the a similar route as the USA.

On top of the loan which is at a rate of around 3% and can be over a period of up to 5 years, young business entrepreneurs will also receive advice, support and training to help their business plans have more chance of success.

Is this enough though? We are hoping that this will be enough to strike-up interest and enthusiasm in the young hopefuls, however, with banks being unwilling to extend or even provide overdrafts in some cases - it will be hard for come of these youngsters to stay in business. Hopefully, the banks will follow suit and start being more supportive across the UK to help business men and women that are in need of extra money to keep them in business and away from liquidation.