It is worth noting that Young Apprentice isn’t the only way for young entrepreneurs to make waves in the business world, and various Alan Sugar-free options are available. Schemes exist to help young business-minded individuals realise their aspirations, offering the financial support necessary to get their venture off of the ground.
StartUp Loans
In 2012, an £82 million scheme, StartUp Loans was put into action, offering young entrepreneurs loans with a lowered rate of interest (Retail Prices Index plus 3%). This provides a more plausible, and considerably cheaper option than overdrafts and credit cards, which could prove difficult to manage. The scheme is open to those aged between 18 and 24, offering loans of around £2,500. The scheme involves The Prince’s Trust, which is another charity organisation, offering loans and grants for young people with no alternate means of funding their project.
The Prince’s Trust offers loans of up to £5,000, repayable at 3% per annum, with no repayments for the first six months. Expansion loans are available, as long as the two loans total less than £5,000. One of the perks of The Prince’s Trust is that the repayment period can be negotiated if the entrepreneur is in struggling financially (obviously not the plan!), which offers an important security blanket. The scheme also offers grants, albeit only under special circumstances, of £1,500 to individuals, and £3,000 to groups, as well as test-marketing grants, enabling the recipient to research into the market for their product, providing an opportunity to test the waters, as it were. As well as the finances, The Prince’s Trust also offers business support, assigning you a mentor who provides advice and contacts. Since 1983, 53% of businesses helped by The Prince’s Trust have remained active in excess of three years. There are some guidelines, however, as to who is eligible for a loan, enabling it to focus on helping those with limited means of income. As such, you must be either unemployed, or working less than 16 hours a week, which may hinder involvement with the scheme for some young entrepreneurs.
Other Options
Other schemes and organisations are available to explore, perhaps with a lesser profile, but equal validity. LiveWIRE, for example, offers four monthly prizes of £1,000 for young businesses run by 16-30 year olds, as well as an annual prize of £10,000. Although this is a more competitive and, ultimately, restrictive route to funding, it does offer an opportunity to receive funds free of repayment, as well as considerable PR and exposure. For social entrepreneurs, UnLtd offers grants of up to £20,000 for those aged 16 and over, striving to create social benefits.
The range of funding specifically available for young entrepreneurs offers attractive alternatives to credit cards and overdrafts, and often comes hand-in-hand with invaluable mentorship. These options require demonstrable passion and evaluation of your proposed venture, however, if these are displayed and your product is evidently marketable, funding for young entrepreneurs can present a far less intimidating alternative to standing in front of the dragons in the den.