Enterprise Loans To Create Jobs

Sir Richard Branson called for the British Chancellor George Osborne to introduce ‘entrepreneurship loans’ in the recent budget. The loans would be similar to the current student loans but available to those choosing to start a business rather than going to university.

The rationale for the call is that young people should be able to access loans to start a business in the same way they can assess loans for education.

The initiative would help create more start-up businesses and ensure those leaving school and not going to university have access to similar levels of financial support.

It would also help to show that starting a business is as valid and credible a choice as that of undertaking a university education.

The proposal is based on the belief that many start-up businesses don’t need a lot of money to get up and running and the amount provided by the equivalent of a student loan, match funded from other sources, would be enough to get started.

There is no doubt that many young entrepreneurs will create new businesses each year and such a loan would help their early stage development.

The same type of low interest rate and long payback terms offered to those going to university would be available to potential entrepreneurs on acceptance of a viable business plan.

Similar payback arrangements as with university loans would apply so the young entrepreneur would not have to make repayments until they earn a certain level of income.

The initiative would ensure that government is supporting those who create jobs, as well as those going to university to simply find jobs.

It may also encourage more of the people not going to university to consider starting a business, not least because it would be seen as a credible option given the backing of the government and taxpayer.

SO, the traditional option of going to university to find a job may be complemented by an equally valid option of starting a business to create jobs.

What do you think? Will enterprise loans create jobs? Get in touch! If you have any comments contact Nick on 028 8224 9494 or via Twitter @nick_oec.