Under this government, youth unemployment reached a staggering one million. Even more face the prospect of a low-skill, low-paid and insecure job. This has to change.
But we don’t just want to help people to get a job; we want to help those who want to create a job for themselves and for others. An enterprise revolution among our young people could help us tackle the scandal of youth unemployment – and help get our country back on its feet. And that’s what we’re setting as a Labour ambition today.
Today, Britain doesn’t do as well as it should in global enterprise league tables. In fact, if we had the same start-up rate as Germany or America, we could create another 200,000 new self-employment opportunities and businesses. That’s the conclusion of a brilliant new report written by Jamie Mitchell, former managing director of Innocent Drinks for Labour’s Youth Jobs Taskforce today.
Jamie’s recommendations should be read and considered by anyone – and any party – who thinks that we can and should do better. Studying the pioneering work of Labour councils all over Britain, along with the great work of the Prince’s Trust and Young Enterprise, Jamie has handed us some big conclusions to think on.
First, we need to make sure enterprise isn’t just a bolt-on to careers advice. Enterprise needs to be recognised as a big option that’s open. There is no lack of talent, ideas or creativity among our young people. Our problem is that too much of this entrepreneurial energy is unrecognised or unsupported. Right now, JobCentres’ advice is mixed at best and what’s left of our careers service often gives enterprise only a fleeting mention.
Second, Jamie also encourages us to consider whether we could expand the Start Up Loan scheme, targeting young people aged 18-30, and how to put more emphasis on encouraging young unemployed people to consider the New Enterprise Allowance, which is on course to dramatically miss its targets. Local councils need to follow the example of trailblazers like Sheffield Council, which has built a team of school enterprise champions, academies like the Peter Jones Enterprise Academy offering enterprise qualifications, business networks offering advice, and universities offering incubator space, advice, training and even grants – all dedicated to boosting the ranks of local young entrepreneurs.
This is a big ambition. It is to the next generation of entrepreneurs that we will look for the businesses that will help our nation thrive in a fast changing world, drive the innovation that will improve our lives, and create the decent jobs we need.
Jamie’s report is about putting entrepreneurship at the heart of our national story and builds on our ambition to make this happen - from our plans for a proper British Investment Bank with a network of regional banks to help businesses get the finance they need, to a revolution in skills giving firms the support, funding and responsibility to make this happen.
Our challenge is to open the floodgates of opportunity, giving our young people the chance to turn their good ideas into successful businesses.
Joint article with Liam Byrne MP