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Entrepreneur-Loan

entrepreneur-loans is the idea of re-appropriating the existing student loan infrastructure for start-ups - to make it easier for them to get to capital especially in the tough beginning years.

Photo of Stefan Ritter

Written by

My flatmate Bryan Gibson (who is a PhD candidate at the London School of Economics) and I worked on a proposal for entrepreneur loans.


From student to entrepreneur

Similar to the student loan systems that most countries already have, an entrepreneur loan should provide capital to help a start-up to kick off, especially in regions more neglected by established venture capitalists.

Student loans have a certain threshold until which the money stays interest free, after which interest rates go back up to the market standard (or the ECB rate).

Building on the comments below, the enterpreneur loan could work as an extension of the student loan system to enable people to start their own company right out of school.


Incentives for growth

With the entrepreneur loan this can be a similar time span of 3 years, but the challenge is to create incentives for start-ups to employ additional staff and grow.

One way of achieving this would be to give a bonus for each new employee hired (eg. The interest rate drops by five points for every additional employee).

Another incentive mentioned by Meena Kadri and Tim Hood would be setting a certain profitability threshold before repayment starts.


Who is behind the system?

Similar to student loans this could be a public-private partnership. The public hand could lower the risks for private investors to join in. The enterpreneur loan is kick off money, after which the start-up could become a business customer for the private partner.

Potentially the revenue of the loans used to save the banks which were too big to fail in 2008 could be channeled into these start-ups as a political gesture of the big helping the small.


Back to school

Because starting a company is a hard education of its own right, the system could include uni-credit (ECTS) points, to help students stay in their programs, or other entrepreneurs to start a degree. This would benefit both the start-ups with easy access to education and academic innovation as well as the universities, which get hands on business experience and know-how onto their campus.

How will your concept support web entrepreneurship?

The idea is to lower the borders to kick-off money. And help students directly from college to start their own company by integrating their student loan into the entrepreneur loan.

How could we get started?

Using existing student loan infrastructure, this loan system should be able to integrate seamlessly and work as an extension of the student loan system.

Virtual Team:

Jyotirmaya Mahapatra Victoria Scarffe Tim Hood Meena Kadri Ashley Jablow Tyler Paine Amy Bonsall

Evaluation results

14 evaluations so far

1. How well does this concept address a significant pain point felt by European web start-ups?

This is a major pain point for European start-ups - 71.4%

This is a "nice to have" but not a serious pain point - 21.4%

I really don't know - 7.1%

2. How novel do you think the concept is?

Never seen it before - very novel! - 28.6%

This is common in some places but not in many parts of Europe - 21.4%

This is not novel but a good iteration - 42.9%

There are already other solutions out there that address this problem - 7.1%

3. How easy is this concept to implement and maintain?

It could be implemented quickly and easily maintained - 7.1%

It could be implemented quickly but will require regular updates to ensure it is accurate and relevant - 14.3%

It is a big undertaking and would need a lot of support and cooperation from people and organisations to make it happen and to maintain it - 78.6%

4. What type of organisation is best placed to take this forward?

The European Commission should own this one - 28.6%

This belongs with member state governments (e.g., the UK, Belgium, etc) - 64.3%

This is best being owned by a private company - 0%

This feels like a non-profit - 7.1%

This is a start-up itself! - 0%

5. Overall, how do you feel about this concept?

It rocked my world! - 42.9%

I liked it but preferred others - 50%

It didn’t get me overly excited - 7.1%

113 comments

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Photo of Tammy Robert

EVERYONE SHOULD GO TRY THIS LOAN FIRM OUR BECAUSE THEY JUST MADE MY YEAR A BLESSING.

I never wanted to let out this testimony due to the fact that i am a very private person but i decided to give this testimony because i needed to encourage some people out there too, Sometimes ago i was financially depressed and i tried and tried every bank in my country, Loan sharks and countless numbers of online lenders! Several online loan cash companies scammed me of about $6k they stole they stole $6,000 from me all in the name of fees and fake promises of giving me a loan and finally gave me NOTHING!fine, the banks in my country maintained that i was having bad credit while other loan sharks maintained a very high interest rate which i could never pay off even 10 years after i die and due to all this reasons i decided to relax and to accept my faith but on my search for an accredited loan agency that offers loans online on Google i came across this loan agency by name FINANCIAL LOAN SERVICES which offers loan at a cheap rate 2% as there terms and conditions was well spelt alongside other interesting testimonies i read about them, online , I was very impressed and convinced but still i was scared because legitimate loan agencies does not offer loans as low as 2% so i was very careful but after asking around about this loan agency from friends and advanced personalities i was meant to understand that they are a legit loan agency and due to this revelation about them i had to choice other than to apply for a loan with them since i was not having any other choice and this was done via the email address that was listed on there: For more urgent information contact them immediately.

Text or Call: +1 (210) 556-0342
Web reference: financiallnservice.com 
Email: info@financiallnservice.com

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