The British government has decided to increase the amount of funding for the Start-Up Loans programme, which allows young entrepreneurs opportunities to finance the start-up of a new business.

“Start-up loans are a great way to help this next generation of entrepreneurs get the financial help – and the confidence – to turn that spark of an idea into a growing, thriving business,” explained Prime Minister David Cameron.

The money underpinning the scheme introduced last year has been increased to £110 million. This £30 million boost will be spread over the next three years.  Additionally, the applicants' age limit which was 24-years-old has been increased to 30.

According to the government, this initiative is a direct response to high demand, despite relatively low initial interest in the programme.

In essence, Start-Up Loans provides budding entrepreneurs with loans of about £2,500 as well as guidance to those interested in starting their own company. Since its launch, over 3,000 individuals have applied with only 460 businesses receiving any funding. By March, the government plans to have financed as many as 2,500 new companies.

The Start-Up Loans programme is not without its critics. Malcolm Evans who invests in start-ups described the scheme as being poorly thought out. He does not believe that just anyone can become an entrepreneur.

The scheme supports a dangerous idea that there’s a business in everyone explained Evans. “Playing a game of ‘let’s all be entrepreneurs’ does not address the terribly serious social issue of the shortfall of good jobs.”