Prince’s trust and LDC join forces to back new generation of young entrepreneurs in Scotland
-Majority of young people in Scotland have or would consider starting their own business but worry about lack of funding and experience
-New partnership between The Prince’s Trust and LDC aims to back the ambition of 1,200 young people across the UK
-Scheme will provide start-up grants and practical support to help young people in Scotland launch their own businesses
Almost two thirds (65 per cent) of young people in Scotland have or would consider starting their own business but many say a lack of funding and practical experience is putting them off, according to new research by YouGov commissioned by The Prince’s Trust and LDC.
The research, which polled over 2,000 18-30-year olds on their future ambitions, found that young people in Scotland see a lack of funding (49 per cent), a lack of practical business experience (49 per cent) and a ‘fear of failure’ (49 per cent) as the most common barriers to becoming their own boss.
Getting access to finance (73 per cent) and practical advice on starting a business (66 per cent) were said to be the most important considerations in helping them get their idea off the ground.
The research coincides with the launch of Backing Youth Ambition, a new partnership between The Prince’s Trust and LDC, the private equity arm of Lloyds Banking Group, to support youth enterprise across the UK.
The three-year initiative aims to help over 1,200 young people across the UK explore and launch their own businesses through start-up grants and additional funding for The Prince’s Trust’s Enterprise Programme. LDC is also providing support through fundraising, volunteering and mentoring activity across its regional offices, employees and investee companies.
Nick Stace, UK Chief Executive of the Prince’s Trust, said: “Starting a business can transform a young person’s life and is a brilliant way for them to fulfil their potential and gain a greater stake in our society. Since 1983, The Trust has helped more than 88,000 young people to realise their ambition of running their own business, but it’s clear from this research that there are many more out there who feel this is something that is out of their reach. Together with LDC, we will help to break down the barriers these young people are facing and give as many of them as possible the confidence and opportunity to become their own boss.”
Mark Kerr, Head of Scotland at LDC, said: “Scotland’s business community is renowned for its entrepreneurial spirit. From world-class food and drink to innovative technology and large-scale industrials firms, we have a vibrant national economy with an international reputation. But the future of the country lies with our youth and we need to ensure they are armed with the tools needed to kick start their own venture.
“The Prince’s Trust has been helping young people in Scotland get the support they need to get into education, training or employment for decades – we couldn’t think of a better mission to support. Working together we will back the ambitions of young people here in Scotland and help to support the next generation of entrepreneurs.”
The research also found more than half (54 per cent) of young people in Scotland think one of the best ways to start a business is within their current field of expertise, whilst three quarters (73 per cent) agree the secondary school system should educate young people about starting their own business.
Some of the main drivers that would encourage young people to think about starting their own business was the prospect of being their own boss (56 per cent), having greater flexibility and control over working hours (55 per cent) and making a difference in society or their local community (41 per cent). Less than a third (27 per cent) saying to ‘get rich’ would be a motivation.
Despite a new wave of entrepreneurs making their fortune from reality television and social media, research shows that established entrepreneurs like Sir Richard Branson remain an important role model for young people, with almost a third (29 per cent) of respondents stating they would aspire most to be like him as an entrepreneur as opposed to the so-called Instagram generation of business celebrities like Kylie Jenner (3 per cent).