May 08
Some of Britain’s biggest entrepreneurs launched a campaign to get more young people into business.

BBC Dragons’ Den stars Deborah Meaden and James Caan, Peter Cruddas, Charles Dunstone, Lord Billimoria, founder of Cobra beer, and Travelex founder Lloyd Dorfman CBE launched the campaign with HRH The Prince of Wales to mark the 25th anniversary of The Prince’s Trust Business Programme.

HRH The Prince of Wales said, "This particular venture has, I hope, made a successful contribution to this country's economy and a valuable investment in the nation's future.

These young people whom my Trust deals with have been given the chance to overcome obstacles which would have defeated most of us; long-term unemployment, ill health, injury, lack of education or qualifications, drug dependency and lack of faith in themselves. The Prince's Trust has given these young people a sense of confidence and belief in themselves which is reward enough."

Serial entrepreneur Deborah Meaden warned: “The UK already lags behind the US and China for fostering entrepreneurial activity and is in danger of slipping further behind if we fail to unlock the talents of our young people.“Securing the next generation of entrepreneurs is vital if we want to remain strong in an increasingly uncertain global economic climate. Young business people bring huge creativity and drive innovation in the UK. We must cultivate this young talent now to maintain the UK’s position as a business leader.”

Campaign launch
The campaign, was launched at an event in central London with Chancellor Alistair Darling. Mr Darling told the conference he was "honoured" to have been invited to the event, and raised a laugh when he told the assembled guests he had met one young businessman who had started an accountancy software company.

He said: "One of the first people we met was someone who has invented something called KashFlow. I indicated that the Treasury is just across the road and may be very happy to buy a copy of his software. There is no shortage of people who have good ideas and self confidence."

But he said it also clear that the government and those who have already succeeded in businesses "work together to make sure new businesses can be encouraged to flourish."

Survey results
The conference coincided with a Trust report that two in five young people would like to start a business, but less than 6% have actually done it. Forty per cent cited high start-up costs as the biggest barrier to starting a business, while almost three-quarters (73%) believe that schools and colleges encourage safe, conventional careers rather than supporting aspiring entrepreneurs. Eighty per cent of young people also claim careers advisors do not mention starting a business as a career option.

The survey of more than 1,000 young people also reveals their concerns about the current economic climate, with more than a quarter (27%) stating that they would start their own business if they lost their job during a recession. Read the full survey

James Caan said: “Too many young people fear they don’t have the right skills or background to start-up in business. Today’s business leaders must work together to dispel this myth, showing that young people, whatever their background, can have their own slice of success.”

Almost half (48%) of young people interviewed believe that the United States does the most to encourage and support young entrepreneurs, compared with only 8% claiming the UK as the leader for enterprise.

More than three-quarters (78%) of young people want the government to provide tax relief and low-interest loans to young entrepreneurs. Two-thirds (65%) believe that only well-off people can afford to start a business in the UK and that today’s entrepreneurs are most likely to be white, middle-class, middle-aged men.

Business club is launched
The Prince’s Trust Business Programme has helped more than 70,000 disadvantaged young people into business since 1983. The Trust is also launching its Business Club, creating a nationwide alumni network for Trust-supported businesses. The Trust needs £1 million a month to continue its Business Programme.

The Trust’s findings follow figures published this week by the Global Entreneurship Monitor, which showed that early stage entrepreneurial activity had dropped in London, south-east, south-west and east Midlands during the past 12 months. Only 7 per cent of Britons said they planned to launch a company in the next three years, compared with 17 per cent in France, 13 per cent in Italy and 14 per cent in the US.