Geoff Leask, Head of Operations, chatted to me about the trust over lunch. The trust assists around 600 young people a year with pre-start advice, low interest loans (4% no fees up to £5000) and occasional grants. There are 750 volunteer who assist young people in many ways including mentoring support. There are over 10,000 alumni from the 22 year old program with some amazing success stories. Here is one example:
Note - vegetarians may not want to watch the first minute or so...
Linking back to my last post this is an example of a highly successful business that would be unlikely to attract angel investment (there is not enough fat in it.... made it a week without a pun, good work) which highlights the importance of programs like this.
In 2002 a growth fund was launched to fill a gap in the market. Businesses trading up to 5 years, previously supported by PSYBT, that wanted to grow were finding it difficult to source funding: a development loan of up to £10,000 and an Accelerator Loan up to £25,000 were introduced for this group. The default rates were lower from these businesses because they were up and running with revenue. The growth results have been impressive.
At the other end of the market many applicants are not yet ready for the standard program so a market test grant was introduced. Successful applicants are awarded £250 to test the market while working on their plan. This might include building the web site, prototypes, setting up a stall at the market etc. If successful they may then apply for the standard program.
Too, too much good stuff, draw breath. Thanks to Geoff and the team for a great visit, lunch and the Prince's Scottish Youth Business Trust pin!
In 2002 a growth fund was launched to fill a gap in the market. Businesses trading up to 5 years, previously supported by PSYBT, that wanted to grow were finding it difficult to source funding: a development loan of up to £10,000 and an Accelerator Loan up to £25,000 were introduced for this group. The default rates were lower from these businesses because they were up and running with revenue. The growth results have been impressive.
At the other end of the market many applicants are not yet ready for the standard program so a market test grant was introduced. Successful applicants are awarded £250 to test the market while working on their plan. This might include building the web site, prototypes, setting up a stall at the market etc. If successful they may then apply for the standard program.
Too, too much good stuff, draw breath. Thanks to Geoff and the team for a great visit, lunch and the Prince's Scottish Youth Business Trust pin!
Very Interesting !
ReplyDeleteHow do they engage with their alumni ?
How do they assess / score applications for the growth funding ?
Cheers
Andrew
The market test grant is a cool idea.. it will be interesting to see if many others programs are doing something similar
ReplyDeleteGreat to see some comments - I will try to answer the basics here and post some links to further details:
ReplyDeleteAlumni - We are building a group through Linked In which is now over 600 strong as well as engaging ongoing with entrepreneurs who have been supported by PSYBT - All managed through a Microsoft Dynmaic CRM
Growth Funding - Is only available to clients started to PSYBT at start up. Applications assesed at a funding Panel/Interview - More detaails at: http://www.psybt.org.uk/growing-your-business
Market Test Grants - A very valuanle resource which has grown in recent years - we have data on those who start to trade with or without further funding as well - Not sure what other programmes around the globe offer similar?
Hi Daniel,
ReplyDeleteThis is Sarah McMillan from Youth Business International (YBI), the global network of youth entrepreneurship support organisations of which PSYBT is a leading member. So glad you were able to meet with the PSYBT team, and sorry we missed you while you were passing through London. If you would like to connect, do drop me another email. Perhaps I can also connect you with Youth Business America, one of the newest members of YBI which is just starting up in Oakland, San Francisco. It would also be great to learn more about your own work.
Sarah
Hi Daniel/Andrew,
ReplyDeleteMy name is Stuart Macdonald and I was a PSYBT startup and now I work with PSYBT and YBI to help promote youth entrepreneurship. Delighted to help if you want to find out more about how PSYBT engage with their Alumni (donations/volunteering/networking online and off) and how some of this was built up over time. The real genius of PSYBT and the wider YBI network is the family touch - you are part of a network of like minded people pulling in the same direction. PSYBT in particular is not just about nurturing entreprenuership but about working to build a culture of munificence among young business owners: so that wealth creators don't just create wealth for themselves. Some high profile scottish entreprenuers have been highly influential in this journey too as role models giving of their time as well as putting their money where their mouth [was]...
You can reach me through my company blog.
Daniel - glad you had some good Scottish hospitality while you were over. ;-)
Cheers,
Stuart Macdonald
Hi Sarah and Stuart,
ReplyDeleteThanks so much for your comments and I will definately be in touch with you when I get home and collate all this information, thanks so much for the help. (PS Sarah, I made contact with YBI in Oakland and have set up a meeting, thanks).
I am about half way through now and finishing off New York. Back at my desk on 16th May.
Cheers for now,
Dan.