David Cameron has told young entrepreneurs he wants to
encourage new businesses in the hope Britain can create the next Amazon or
Google.
The Prime Minister met young people involved in starting
their own firms on a visit to the University of Central Lancashire in Preston.
The event came as it was announced funding for the
government's Start-Up Loans scheme was being boosted by £30m to £110m over
three years.
It means thousands more young people could get Dragons'
Den-style government-backed loans to help them turn business ideas into
reality.
Cameron was accompanied on his visit by James Caan, one of
the Dragons in the BBC show and chairman of the scheme.
During a question and answer session, the Prime Minister
said some of the world's biggest brands did not even exist just a decade ago.
But Britain's strength in having English as the
international business language, and its IT sector and universities, allied to
encouraging entrepreneurs meant it had the ingredients for success.
"There's absolutely no reason why Britain can't create
the next Google, the next Amazon, the next Facebook," he said.
"These are tough times I know, but we have to do
everything we can to encourage that private sector growth, that small business
growth."
The government says it is on target to issue more than 2,500
loans by March - despite criticism that only a few hundred worth £1.5m have
been finalised since the scheme was formally launched last autumn.
Some 3,000 people are said to have registered an interest in
the money and mentoring packages, which are only available in England and are
being delivered through charities such as the Prince's Trust.
Those whose business plans are deemed "robust"
typically receive £2,500, which can be repaid over five years at a relatively
low rate of interest.
Caan said: "There has been a major shift in the way
business is viewed by the public, and entrepreneurs are now seen as creative
and exciting role models.
"I am delighted to see that more and more young people
are now looking to set up their own business.
"It is only with this renewed focus on youth
entrepreneurship that we will create more jobs and wealth and see the economy
flourish once again."
But Labour said the scheme was not doing enough.
Shadow business secretary Chuka Umunna said: "With our
economy flat-lining, it's essential that initiatives like the Start-Up Loans
scheme are delivered effectively if they are to provide real opportunities for
our young entrepreneurs.
"That's why it was disappointing that figures released
at the end of last year suggested delivery of this scheme, like so many others
from this government, was not living up to David Cameron's rhetoric."
John Walker, national chairman of the Federation of Small
Businesses, said: "Finance continues to be hard to get for people that
want to set up a business, so it is good news that more funding is now
available to more people.
"However, in some cases £2,500 may not get a business
very far so we would call for a more flexible approach where a start-up could
apply for more if needed."
Source: 4 January 2013, Huffington Post
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