Young Entrepreneurs

Debate between Justin Tomlinson and David Simpson

Wednesday 18th April 2012 Westminster Hall

[Justin Tomlinson (North Swindon) (Con)]

I called for this debate on encouraging young entrepreneurs in order to focus our support for business on the next potential generation of wealth creators. During my time as an MP, I have focused much effort on supporting businesses. That is based on my experience of owning my own company and the regular business and retail forums that I organise in Swindon. I myself was a real wheeler-dealer when I was at school—if someone needed football stickers, comics or school lockers, I was their man. I want that type of young entrepreneurial flair to be promoted and supported.

I note that in the debates on business and enterprise, we often do not focus on encouraging young people to consider, as a career path, setting up their own business. When I go round talking to young people in schools and colleges, I find that they are incentivised by incredibly popular television programmes such as “The Apprentice” and “Dragons’ Den”. When I ask them to put their hands up if they would be interested in setting up their own business, the hands shoot up. In many ways, that is the perfect time for people to start their own business. Once people are a bit older and have children and a mortgage, they have a lot to lose. For a young person with a good idea, often the worst that can happen is that they will blow their savings.

When hands are thrust up into the air enthusiastically to show that those young people are keen to follow in the footsteps of those they have seen on “The Apprentice” and “Dragons’ Den”, I ask a follow-up question: “How many of you will take this up as a career?” Immediately, the hands go down, there is a deafening silence and tumbleweed rolls across the room. I ask why that is the case and it transpires that they simply do not know how to turn those ideas and that enthusiasm into setting up a business. It is crucial that we change that, because just over 1 million 16 to 24-year-olds are unemployed and 25% of graduates cannot find work. Many of the graduates who do find work do not necessarily use their degrees; they do not necessarily work in the areas in which they gained their qualifications. In addition, we as a nation are seeking to rebalance the economy.

Those are clear reasons why we should be supporting young entrepreneurs. I am delighted that the Government are right behind that. The decision to create 40,000 business mentors is key. I will come on to that. We have also had the exciting announcement of the £10 million pilot of an enterprise loan scheme that will give young people access to finance in a similar way to the student loan concept.

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Gentleman on obtaining the debate. I remember well starting my own company some 32 years ago. I do not claim to be a wheeler-dealer like the hon. Gentleman; nevertheless, we managed to succeed. Does he agree that although it is important to encourage young entrepreneurs, we need to get to grips with the issues of financing young entrepreneurs and the bureaucracy and form-filling that they have to go through, which puts many young people off?