‘Launch It came about 25 years ago when Philip Howard, who was volunteering with the Prince’s Trust, noticed grants were going to young people to get started in business, but the businesses weren’t getting started because all the money was going out in rent,’ recalls Shelley.
Howard decided to start an initiative offering low rent paired with high support, which eventually became Launch It. ‘We’ve now grown to three sites in London, two in Scotland, one in Kent, one in Stoke-on-Trent,’ says Shelley. ‘Our mission is to empower young entrepreneurs from disadvantaged backgrounds to get set up in business and really improve their lives.’
The cornerstone of Launch It’s philosophy remains low rents combined with expert support. ‘We rent at 50% of the market rate to a young entrepreneur over a two-year period and then we graduate to what call a soft commercial rent,’ explains Shelley. ‘We facilitate them moving on and then we get another business through.’ The rent includes all bills, plus they get an on-site enterprise manager and a business mentor.
The charity also provides a lot of personal support to the young people who have often been through crises in their lives. ‘My belief is that if their personal life is not in the right place, the business will never be in the right place.’
Shelley has seen some spectacular success stories. ‘One young man came to us after being released from young offenders. He had an idea to start an online accountancy business and he ended up selling that, I think, for £20 million.’ Mostly, though, Launch It’s young entrepreneurs create thriving businesses without necessarily making a fortune. ‘I’m always careful to say our intention is not to create millionaires, but sometimes, accidentally, we do. But most of the young people in business employ one or two people, which is great for the local community.’
Shelley says 86% of the young people who come through Launch It have seen a positive outcome. ‘66% of businesses are still running after five years, as against the UK average of 42%. The other 20% find a job through contacts made while running the business.’
And it’s not just the young entrepreneurs who benefit. ‘A study done recently showed that for every £1 invested in a Launch It centre, you get £6.75 back in return in the local economy through using local suppliers and creating jobs.’
Sounds like a win-win from where I’m standing.
