Prince's Scottish Youth Business Trust generates £22.6 million for Scottish economy

Mark Strudwick, chief executive of PSYBT, comments, "The evaluation demonstrates the positive impact which PSYBT is having on Scotland's young entrepreneurs. By encouraging more of our young people to set up their own businesses, we will have a new generation of businesses providing new ideas, innovation and increased productivity - positively contributing to the Scottish Economy."

PSYBT's aim is to help increase the number of new start-up businesses amongst young people in Scotland and improve the long term survival and growth of these start-up businesses. Historically, this age group has not started as many businesses as the Scottish population as a whole.

Scottish Enterprise, which commissioned the evaluation, has been a key long term funder of PSYBT. Based on the results of this positive evaluation, Scottish Enterprise has approved a further £2.2 million in funding for PSYBT, over the next three years. This new funding agreement, which comes into effect in April 2008, will seek to build on PSYBT's successes.

It will aim to improve the economic impact of PSYBT's activities, by encouraging more of PSYBT's client companies to achieve growth. Scottish Enterprise is currently in discussion with PSYBT to finalise how a stronger growth element can be built into PSYBT's support, making use of PSYBT's regional delivery network and its access to private-sector volunteers who provide valuable aftercare and mentoring support to companies.

Terry Currie, senior director at Scottish Enterprise, says, "PSYBT has a proud history of supporting young people and giving them the opportunity to set up in business and be their own boss. PSYBT has a powerful reputation in the marketplace and we believe it should be the main avenue for young people wishing to set up in business.

"By working in partnership with Business Gateway to help young people achieve their aspirations to grow into substantive companies, PSYBT will contribute to the Scottish economy at local and national levels."

While Scottish Enterprise will enhance support for young people through PSYBT, it has been decided to cease the business start-up award for the 18 to 30 age group, following an evaluation of the pilot programme that has been running since 2004.

The evaluation found that the award had been a major marketing and operational success, attracting significant numbers in the 18 to 30 year old age group. However, the scheme attracted mainly micro-businesses, with only a small proportion of start-ups achieving growth. As a result, the overall economic impact of the scheme was low.

The evaluation concluded that future support in this area be targeted towards those start-up businesses that have the potential to grow; hence Scottish Enterprise's decision to provide further support to PSYBT, with a focus towards growth businesses.

The start-up award will cease on 31 March 2008. Young entrepreneurs seeking information on how to start a business, or grow an existing business, should, in the first instance, contact Business Gateway on 0845 609 6611 or visit the Business Gateway website. PSYBT works alongside the Business Gateway system.

Young people keen to start their own business, but not sure where to start, can also visit the 18-30 Enterprise Show being held on 9 February 2008 at the Edinburgh EICC. Entry is free, with the show featuring TV news presenter Shereen Nanjiani, and founder of MJM International (and designer of the Ultimo Bra), Michelle Mone. Free workshops on selling, finance, business planning and market research will be on offer, as well as help and advice on how to access funding.

Full event details are available at on the 18-30 Enterprise Show website