Cash aid to help young set up businesses unveiled

The meeting follows his announcement of a new initiative that will let young entrepreneurs get access to around £80m worth of loans to get new businesses off the ground.

The Prime Minister said he hoped the new £82.5m StartUp Loan scheme for 18- to 24-year-olds could lead to 30,000 more start-ups and unleash a “new wave” of enterprise to support much-needed economic growth.

The loans will be administered by groups that already work with young people, such as the Prince’s Trust.

He spent time yesterday chatting to youngsters at the trust’s offices in central London about the successful businesses they have set up after being mentored by the charity’s enterprise programme.

One of the people he spoke to was Lenique Louis, 27, who turned to drink and drugs during a long spell of unemployment.

With the help of the Prince’s Trust, she has started a successful jewellery business, which specialises in making bespoke handmade rings.

Miss Louis, from Brixton, south London, said: “Meeting David Cameron was amazing. I think it was the highlight of my life, I would say. He just really believes in what we’re doing, and what the Prince’s Trust is doing and how they try to help people.”

A newly published enterprise review says Britain would have 900,000 more businesses if it had the same rate of entrepreneurship as the US.

The review, by former Conservative Minister Lord Young of Graffham, who joined Mr Cameron on the visit, says that “many don’t realise the opportunities that enterprise offers”.

The StartUp Loans are expected to be worth typically around £2,500, to be repaid within five years at most. Interest will be charged at the level of the Retail Prices Index plus 3 per cent.

Star of Dragons’ Den James Caan will chair a new body to oversee the scheme.

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