Support and funding for young entrepreneurs

Starting a business is an increasingly popular career choice for young people, especially those who may feel like further or higher education does not suit them.

Enterprise Nation reports that 48% of young adults in the UK between 18 and 24 are considering becoming entrepreneurs and starting their own businesses.

There are many reasons to start your own company – it might be a side hustle to supplement an existing income, a lifelong dream, or a way to make money from a skill or passion.

Over recent years, the spotlight on successful entrepreneurs in the media and advances in tech may have inspired more young people to launch start-ups.

However, starting a business as a young person could present several challenges.

Many young new business owners may not yet have the necessary experience to run a company.

Important skills that might be needed include planning, marketing, sales, and financial management.

A viable financial history and financial security can also be an advantage when securing funding for a start-up.

However, plenty of support is available for young entrepreneurs who are ready to start their own business.

Funding and youth entrepreneurship mentoring support

Organisations providing funding and entrepreneurship support for young people include the following:

Start Up Loans

A Start Up Loan is a government-backed personal loan for individuals who want to start or grow a business in the UK.

You can borrow £500 to £25,000 at a fixed interest rate of 6% per year, which you can pay back over 1-5 years.

There are no fees for arranging the loan or paying it back early.

In addition to the funding, successful applicants receive 12 months of free mentoring and exclusive discounts on business products to help them succeed.

You are eligible for a Start Up Loan if:

• you’re 18 years of age or older
• you’re a current UK resident
• you’re starting a new business or have been trading for up to 36 months
• you’ve been unable to secure finance from other sources
• your business is based in the UK
• you have the right to work in the UK
• your business type and loan purpose is eligible under the terms of the scheme
• you can pass a credit check, and you can afford to repay the loan (try our personal survival budget template to help you manage your money).

Learn more about the characteristics needed to succeed as an entrepreneur and how to apply for a Start Up Loan.

Young Enterprise

Founded in 1962, Young Enterprise is a national charity providing financial and enterprise education to young people.

It works with businesses, schools, and further and higher education institutions to give students the skills and confidence to improve their future career prospects or start their own businesses.

Many of the organisation’s Enterprise Programmes support careers education, provide employer encounters, and help young people develop the skills they need to start a business.

Youth entrepreneurship support includes the 10X Challenge, which gives young people aged 11-19 four weeks to start a business with an initial £10 pledge.

The Start-up Programme gives university students the opportunity to run a student business for up to 12 months.

Young Enterprise also works with businesses to support young people in developing their skills and preparing for work.

To find out more about programmes you might be able to access, contact Young Enterprise.

The Prince’s Trust

Launched in 1976 by The Prince of Wales, The Prince’s Trust (soon to be renamed The King’s Trust) is a charity that helps young people aged 11 to 30 develop essential life skills, prepare for the world of work, and access employment opportunities.

It includes a range of youth entrepreneurship support through various programmes and initiatives.

The charity has helped 90,000 young people to start their own business through its Explore Enterprise courses for 18 to 30-year-olds, which are held in centres across the UK.

After an introductory session, you attend a four-day workshop to receive expert guidance on topics ranging from business planning to marketing, sales, tax, and budgeting.

After the workshop, you’ll be given access to a Prince’s Trust contact who will support you in planning and testing your ideas before you launch your business.

The Prince’s Trust also works with Start Up Loans to offer loans of up to £25,000 and Start Up Grants of up to £5000.

If you’re interested in finding out more, contact the Prince’s Trust.

UnLtd

Formed in 2002, UnLtd funds and supports social entrepreneurs who start businesses with a mission to improve society.

UnLtd describes social entrepreneurs as ‘enterprising people who are transforming our world for good’ with a social venture – ’a business which has a social mission at its heart, often described as a profit for purpose business’.

As long as you meet the criteria for funding, UnLtd awards up to £8,000 for individuals starting up a social enterprise.

For those scaling up a financially sustainable social venture, up to £18,000 in funding is potentially available.

If you successfully secure funding, you’ll also have access to expert guidance from business professionals and corporate partners, plus workshops to expand and develop your knowledge.

Find out more and apply for UnLtd’s awards.

Seed Enterprise Investment Scheme

Designed to increase economic growth in the UK, the Seed Enterprise Investment Scheme (also known as SEIS) is a government-backed scheme created in 2011.

It is designed to help small, early-stage UK companies raise funds by offering tax relief to individual investors who buy new shares in those companies.

Eligible start-ups based in the UK that have been trading for less than two years can register their company on the SEIS Directory for an annual fee.

Depending on your paid plan, you can promote your business with a searchable listing, receive messages from potential investors, and more.

If you participate in the scheme, you must be prepared to give investors equity in your business.

Read SEIS’ entrepreneur information to learn more about the criteria for start-ups wishing to join the scheme.

Innovate UK

Innovate UK is part of UK Research and Innovation, a non-departmental public body sponsored by the Department for Science, Innovation and Technology (DSIT).

The organisation aims to drive economic growth and create jobs.

They offer funding and support in areas from the medical and biological sciences to astronomy, physics, chemistry, and engineering to social sciences, economics, environmental sciences, and the arts and humanities.

You can search for current opportunities on Innovate UK’s Funding Finder to see if you might be eligible for a grant.

Read Innovate UK’s guidance for applicants for more information.

Launch It

Launch It is a group of UK youth enterprise charities providing youth entrepreneur support to founders who want to start or grow their own businesses.

In particular, Launch It aims to level the playing field for young people from underrepresented communities, enabling them to develop skills and access business opportunities.

The organisation offers a free two-year support programme, including training, mentoring, and funding opportunities to help young entrepreneurs start their own businesses.

There are Launch It Enterprise Centres in London, Kent, and Scotland – community hubs where eligible budding entrepreneurs can rent affordable workspaces.

Visit the Launch It website to find out more.

Awards for young entrepreneurs

Small Business Awards UK

The Small Business Awards (SBA) is an award for small businesses and aspiring entrepreneurs in the UK.

The categories range from Best Beauty Business to Best Cafe and Best Floristry Business.

Finalists can attend the awards event in Birmingham and network with industry experts.

If your business reaches the final stage, you can use SBA’s media templates for press releases to help raise brand awareness.

Entry to these awards costs £12 and you can enter the SBAs by visiting their website.

FSB Awards

The Federation of Small Businesses (FSB) Awards is free to enter and a potentially valuable opportunity to network with other young entrepreneurs and industry professionals.

You can enter 12 categories, including the ‘Start-up Business Award’, ‘Young Entrepreneur Award’, or ‘Micro Business Award’.

These prestigious awards are separated by region and nation, and entrants from all industries are welcome.

Check your eligibility to enter the FSB Awards on their website.

Great British Entrepreneur Awards

Dubbed the ‘Grammys of Entrepreneurship’ by the hugely successful entrepreneur Steven Bartlett, the Great British Entrepreneur Awards (GBEA) is free for all entrepreneurs to enter.

The awards categories range from ‘Early Stage Standout’ to ‘The Maker and Creator of the Year’.

Entrants can compete in several categories, which can all be managed via an online portal.

Learn more about the GBEA’s ‘Young Entrepreneur of the Year’ category and how you can enter. 

Running a business whilst at university or college

Some students choose to start a new business whilst in higher education. 

Check with your university or college to find out whether it offers support for student entrepreneurs or has links to organisations that can help your start-up journey. 

There may be a Student Enterprise Services or a similar team who can support you with guidance, events, and even funding or sponsorship. 

These services vary depending on your university or college and offerings can range from networking evenings to funding and mentorship opportunities.

For example, UCL runs a 6-week programme for its student entrepreneurs to turn their passion into a business, with a chance to win a share of a cash prize at the end. 

Edinburgh Innovations is the University of Edinburgh’s free enterprise service for students or recent graduates who want to start their own business, offering 121 support, competitions, and events.

Consider looking into NACUE – a membership organisation for student entrepreneurs offering practical programmes and events in collaboration with UK students and graduates.

Some businesses also support student entrepreneurs – Santander runs initiatives via universities for students and graduates with an idea or existing venture, and offers funding for development.

What you need to start a business

There may be some groundwork before you can start your journey to becoming a successful entrepreneur.

Once you have a rough business idea, conducting market research can be key to discovering whether it is viable and has the potential to succeed.

Your research could include competitor research, conducting customer surveys, and reading industry reports and whitepapers.

Also, consider how you plan to fund your start-up – young entrepreneurs have several financial options, from crowdfunding to Start Up Loans.

If your business idea is viable, you could then move on to drafting a business plan.

This working document describes your core business objectives and how you plan to achieve them over a set period.

This document could include:

• financial forecasts
• details of the products and services you want to offer
• plans for scaling and sustaining your business
• plans for marketing your business.

Download our business plan template.

How do I know if starting a business is right for me?

You may have a great business idea that has the potential to become a success, but how do you know if running a start-up is right for you?

Doubt and anxiety can be common emotions for budding entrepreneurs on a start-up journey, especially those who realise they may not have all the necessary skills.

A great start-up owner might have some of the following attributes:

• business acumen
• communication skills
• innovative thinking
• resilience and motivation.

However, you can also find your particular strengths and learn new skills as you build a new business.

Read our complete guide on the skills you need to start a business.

Connecting with other young entrepreneurs and start-up owners could also help to improve your confidence - consider attending in-person or online events to learn new skills.

Organisations such as Hatch help to support young entrepreneurs – offering exclusive events, peer support and seminars to support entrepreneurs of all backgrounds.

Also, look for local business networking groups – joining is typically free, and they can be a great source of inspiration and support.