Can you start a business with £2,500?

cash

The government has announced that the Start-Up Loans scheme has been expanded from 16-24 year olds to the under 30s. The average loan is £2,500 but many commentators have criticised the initiative saying that amount is not enough to start a business. We asked our Twitter followers and Facebook fans and many said it is possible.

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Penguin's picture

Of course you can start a business on £2,500 ... and what does 'average' mean here?

 I agree with most people here - it depeds on the type of business, but yes of course you can. I started with nothing ten years ago but I did have support from my family in that i was working from home and my partner paid all the bills for six months while I got established. This scheme started with young people and perhaps many of those were living with their parents anyway and not contributing, or contributing minimally, to household bills, so all that £2,500 goes straight into the business.

The other thing to bear in mind is the word 'average' - this could mean that somep people are getting loans of £5,000 or £10,000 and others are getting £500!

amalannie's picture

It is hard to start a business, however a positive attitude will help

I have started my business on a budget, with only £2000. I have managed to set up my own website, as well as social media sites which of course are free. I registered with Smarta Business and they have supplied me with an account that has Legal Documents, Business Plans, Website, Emails and Accountancy package all for £36 per month. When I first started the business my computer died, so the most expensive items were all the electrical items and basic administration materials. Smarta Business are also an on-going source of help, which is priceless, it can be lonely setting up a business.  

It is very hard at the moment, the hardest thing to do is establish myself, and I guess that's where I would seek extra help if I had the money, but I don't so I adopt this attitude and hope it gets me where I need to be, "if I really want this business to work then I must be a savvy shopper and research as much as possible, the internet will provide me with information." 

 Whilst setting up this business I still have a mortgage to pay and children to raise, there have been times that I think of applying for a loan, unfortunately there aren't really any banks willing to loan in this recession. I just have to hope now that I find the right marketing tool and start doing what I love best.

Business startup for less than £2500

 Obviously there are businesses that can be started with less than £2500, likewise there are those that it's just not possible to start up with only £2500. The number is not the issue here, the important thing to bear in mind is whether or not the Government will ever work out that BORROWING is not the answer.

The financial mess this world is in is entirely due to excessive borrowing. For decades the banks have promoted excessive debts amongst (university) students, now the Government wants to take that one stage further and encourage all youngsters to get themselves into financial difficulties at as early an age as possible.

Saddling a brand new enterprise with loan repayments is a surefire way to increase the likelihood of the business failing in the first few years.

Far better to be much more selective, employ some REAL business experts and GIVE funds and mentoring to people of any age with properly thought out thoroughly researched business ideas. Then only business ideas which will bring some value to the country as a whole rather than just the individual. In other words only for proper businesses, which involve manufacturing, not for pointless service industries that just move money around the economy but for businesses that actually generate something of real worth.

When the Government starts thinking like this, then and only then can we ever hope to put this country back on the map!

 

 

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