An £82.5m scheme is being launched today to give 18 - 24 year old entrepreneurs finance and support.
The scheme could potentially start over 30 thousand new businesses, in a move to boost enterprise and economic growth.
Any young people aged 18-24 accessing the StartUp Loans will receive expert and personal support to help develop a business plan and access training. Where the business plan is robust and approved, they will be able to access a loan, typically in the order of £2,500, with a repayment period of up to five years.
Prime Minister David Cameron said:
"StartUp loans are a fantastic opportunity for young people, not only to get the financial support they need, but also to give them the confidence to believe they can do it, that they can turn an idea into the next global brand."
The StartUp loans will be administered by a range of organisations that have experience in working with young people, including the Prince's Trust and Manchester-based Economic Solutions Group.
James Caan, one of the UK's best known entrepreneurs, has agreed to chair a new body to oversee the allocation of funds and to work with delivery partners to ensure the young people gain the maximum benefit from the support and finance on offer.
Young people looking for support and finance through the StartUp loans can register at www.startuploans.co.uk or http://businessinyou.bis.gov.uk, where they will receive regular updates and information.
The announcement comes on the day that Lord Young's report on enterprise is published. The report sets out the UK's enterprise landscape and offers guidance on starting a new business. A PDF of the report can be viewed here.