Sir Richard Branson has insisted that the Government should help and support small commercial property businesses to grow in a bid to give the economy a boost.
Branson believes that “Small and medium-sized businesses are the engines of any healthy economy,” and has urged the Government to consider easing business rates and regulations that put obstacles in front of aspiring new business ideas. Branson also wants the Government to encourage banks to lend to SMEs. He said: “They need investment and finance, and that comes from the big banks. The politicians talk of encouraging lending; we need action to match that rhetoric.”
In an interview with the Observer, Richard Branson stated: “Government needs to focus on smaller businesses and find ways of making it easier to set up a business in the UK. It could look at introducing policies such as a national insurance holiday on hiring people for the first two years.
“We need to encourage more entrepreneurship from the next generation – and focus on giving them the basic business and money-management skills as part of the schools curriculum.”
However, since the interview was published, the Government have announced plans to offer loans to help young people start-up a commercial property business. People aged 18-24 will be able to apply for a loan worth around £2,500 and pay interest at the Retail Prices Index (RPI) rate plus just three per cent. However, the loan must be paid back within five years – and this could be a problem if some business aren’t successful or get off to a slow start.
Speaking of the opportunity available for young people, David Cameron, stated: “I want this to be the year where people can think: yes, I can do it; that we can get as many viable businesses as possible off the ground, that people can have a go and that we see a whole new wave of entrepreneurs who start small but think big.”
The loans are only aimed at 18-24 year olds – so what about the over 25 year olds who have a budding idea? Many of those people may have recently been made redundant and have time on their hands to start a business, but have no access to a loan.
But as Lord Young expressed, opportunities should be made available to everyone who has potential to start a business: “Now, more than ever, we have got to get behind our small businesses and encourage even more people to seize the opportunities and support that there is to start up on their own.”
What do you think about Sir Richard Branson’s comments? Will you be applying for one of these start-up loans? Or are you like me and over the age limit and not eligible to apply?
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