November 21st, 2014
It is good to see that well known faces, including members of the Royal family, are fronting positive schemes for start-up businesses. The Duke of York has been involved in launching iDEA (Inspiring Digital Enterprise Awards), and recently announced the first winners under the scheme, which aims to help a million young people across the country develop digital business skills.
While Prince Andrew is backing digital enterprise, big brother Charles already fronts a major initiative to support small businesses through the Prince’s Trust Enterprise programme. Many famous faces are regularly involved with Prince’s Trust events, with the charity’s celebrity ambassadors including classical singer Russell Watson, TV chef Jamie Oliver and Everton footballer Leon Osman.
Other examples of celebrities backing small business are James Caan from Dragons’ Den, who runs the company administering the Start Up Loans scheme, and Karren Brady of West Ham and The Apprentice fame who is involved with Nectar Business Small Business Awards. This demonstrates how The Apprentice and Dragons’ Den not only help the individuals who get their moment of fame, but are also helping to promote a culture of entrepreneurship.
Beyond the major schemes, celebrities also sometimes back particular small businesses and products via social media or crowdfunding initiatives – which gives a major boost to the individuals concerned and helps to spread the word about their talents.
What Schemes Are Available to Help Start-Ups?
While it is good to see Royals and other celebrities putting the focus on small business start-ups and promoting schemes, the most important thing is the schemes themselves. These projects are vital because they give budding entrepreneurs somewhere to turn for help. Often, when people are newly starting out in business, they are full of enthusiasm but need start-up funding to turn great ideas into a working reality. Also needed are information and advice on how to go about setting up a venture that will be successful and have potential to grow.
Start Up Loans: More than 21,000 British businesses have received help via the Start Up Loans scheme, backed by the Department for Business, Innovation and Skills. Under this initiative, loans are usually made to businesses that have been operating for under a year, sometimes extended to two years. The loans are made through “delivery partners”, based around the country, who help individuals to develop workable business plans. They also find mentors to help the new business develop.
New Enterprise Allowance: This is another Government-backed scheme, which aims to help people on certain benefits to start their own business. Jobcentre Plus staff can advise on whether individuals are eligible. Once an applicant’s idea is approved, they can receive a weekly allowance for up to 26 weeks to help them get started and will also get support from a business mentor during their first few months.
Prince’s Trust Enterprise Programme: Young people aged from 18 to 30 can get help to set up in business via this scheme, which has already backed more than 80,000 people over the past 30 years. Low-interest loans are available, while some people can also be eligible for grant help. Training, mentoring and support are all part of the programme, available to individuals who are either unemployed or working only a small number of hours.
Inspiring Digital Enterprise Awards/Nominet Trust: Backed by the Duke of York and the Nominet Trust, Inspiring Digital Enterprise Awards (iDEA) runs an annual competition for young people with business ideas, with funding for the winning projects. It is also offering training to help a million people aged from 14-25 improve their business skills. Separately from the youth awards scheme, Nominet provides business funding for some types of technology project.
Local Authority Schemes – Many local authorities give help to new businesses, ranging from finance to advice. There are 39 Local Enterprise Partnerships created by local authorities and businesses working together, which often make funding available to start-ups.
Banks – Don’t rule out your bank when looking for sources of finance. High street banks do work with small businesses, and many have signed up to the government-backed Enterprise Finance Guarantee. Under this scheme, loans are offered to companies which have strong business plans but may not meet normal lending criteria.
Crowdfunding – In this digital age, crowdfunding websites are becoming an increasingly popular option for new entrepreneurs, who are able to connect with potential investors and receive a small amount of funding from each individual.
The Need for Ongoing Support
Even once you secure initial funding via one of the many schemes operating, which may also come with mentoring, there is a need for ongoing support. Expert advice is essential in the early days to get your business established and ensure it can grow. One of the most valuable ways to get the input you need is through networking with other people in your area, via business associations and other similar organisations.
Basepoint can give vital support via our new MiBase Business Support Service, available to licensees 24/7, which offers valuable free mentoring, free business factsheets and a knowledge exchange system. Basepoint also supports training, publicising seminars and courses, and brings small business owners together by offering a host of networking opportunities.
Have Your Say
What helped you to get going in business? Do you have any tips for others who are starting out as entrepreneurs?
