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Stricter borrowing criteria and the effects of the credit crunch are unlikely to significantly reduce the number of business start-ups by young entrepreneurs, according to Business Link.
Research shows that the majority of budding company directors use their own savings or borrow from family and friends rather than using bank finance, so they are unlikely to face extra difficulty.
A poll of young entrepreneurs by Shell LiveWIRE discovered that more than half of respondents found finance to be the chief barrier to starting up a business, while 39 per cent of entrepreneurs admitted to using their own money as finance.
Some 17 per cent borrowed from family and friends, 15 per cent managed to get a government grant or loan, 13 per cent got help from their banks, while six per cent resorted to credit cards.
Andy Berrow, senior business advisor for Business Link, said: "On this basis [of the findings by Shell liveWIRE] I would not expect to see any great reduction in the level of start-ups involving young entrepreneurs."
Mr Berrow also pointed out that there is also plenty of help available for fledgling businesses.
"The Princes Trust continues to support young people looking to start up in business whilst charities such as Lionheart Challenge and Young Enterprise offer students a taste of entrepreneurship in a safe, controlled environment," he added.
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