Today’s Young People;Tomorrow’s Economy

Supported by:

AcknowledgementThe Prince’s Trust would like to thank the Citi Foundation for funding this report.

Published by The Prince’s Trust© The Prince’s Trust

First published February 2011

The Prince’s Trust is a registered charity number 1079675, incorporated by Royal Charter.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted by any means, electronically, mechanical, photocopying, recorded or otherwise without prior permission of the publisher.

Today’s Young People;Tomorrow’s Economy

Foreword

Today’s Young People; Tomorrow’s Economy is a new report from The Prince’s Trust and Citi Foundation. It highlights the potential financial benefits of helping young people into self-employment or other work through the popular Enterprise Programme offered by The Trust.

By equipping unemployed young people with the skills, confidence and motivation to move into jobs or self-employment, the report suggests that the UK can reap the rewards of economic growth. Since April 2009, more than 5,000 young people have been supported through the new Enterprise Programme – a development of The Prince’s Trust Business Programme. Today’s Young People; Tomorrow’s Economy calculates that these young people could bring up to £26.8 million to the economy over a three-year period. With The Prince’s Trust aiming to help a further 6,000 young people through this programme in the coming year, the impact will be even greater. For the young people themselves, the Enterprise Programme provides an escape route from the frustration and misery of unemployment. It helps them realise their potential and, in many cases, transform their lives.

For the economy, there is a double benefit: boosting the business sector whist reducing the benefits bill. In short, by helping today’s young people we are investing in tomorrow’s economy.

Martina MilburnChief Executive, The Prince’s Trust

Young people have been hardest hit in this recession – 951,000 16 to 24 year-olds are now out of work. One in five who want to work can’t find a job. It is against this backdrop that we believe our Enterprise Programme is more relevant and important than ever.

Methodology

The financial model used in this report was developed by independent evaluator SQW using target outcomes. SQW provides research, analysis and advice on sustainable economic and social development for public, private and not-for-profit organisations.

SQW designed a logic model to articulate the Enterprise Programme rationale, aims and activities and how these link to outputs and outcomes.

The evaluation explores the potential financial impact of the programme based on a range of estimates of economic impact arising from the logic model. The higher estimates are used in the figures quoted as these were predicted to be the most likely scenario.

This report estimates the potential financial benefits of helping local young people into jobs or starting them up in business through The Prince’s Trust Enterprise Programme in terms of economic earnings.

About The Prince’s TrustEnterprise Programme

The programme is open to 18 to 30 year-olds who are unemployed or working fewer than 16 hours a week, especially from other Prince’s Trust target groups – those who are in or leaving the care system, those who have struggled at school and those who have been in trouble with the law.

By harnessing young peoples’ enthusiasm for enterprise, the programme helps them to hone entrepreneurial skills - building confidence and motivation.

The programme offers support in four stages:

>Information session – a short session to explain the programme, helping young people decide whether they want to take part

>Explore Enterprise course – four days to learn about topics relevant to planning and running a business to help young people decide whether self-employment is right for them. Course participants write business plans, test their ideas and learn about areas such as finance, growth and marketing

>One to one sessions – to support young people to think through, choose and plan their next step. Grants are available to help young people test their ideas

>Mentoring and financial support – to help young people achieve their chosen outcome; progression mentoring to help young people into jobs, education or further training or business start-up support in the form of business mentoring and, for those that really need it, financial support

The Enterprise Programme allows participants to:

>work out if self-employment is right for them

>explore and test their business ideas

>meet other young people

considering self-employment

>develop their skills

>work with a mentor

>start their own businesses or achieve alternative goals in education, training or work

The Enterprise Programme offers support and funding to help young people explore and test their ideas, write plans and start their own businesses or achieve other goals in education, training or work.

Today’s young people; Tomorrow’s economy: The findings

With plans to support a further 6,000 young people next financial year, the youth charity’s efforts could boost the economy by a further £30 million over a three-year period.

Estimated value to the economy over a three-year period of young people supported by the Enterprise Programme since its launch in 2009/2010

The estimated total value for the whole of the UK is up to £26.8 million.

The figure takes into account the potential financial benefits of helping local young people into jobs or starting them up in business in terms of economic earnings.

The Prince’s Trust and Citi Foundation report finds that disadvantaged young people who have taken part in the Enterprise Programme to date could bring an estimated £26.8 million to the UK’s economy over a three-year period.

Region Numbers of young people Estimated supported (by December 2011) value (£)

East of England 265 1,327,000

East Midlands 953 4,772,000

London and the South East 826 4,136,000

North East 220 1,101,000

North West 431 2,158,000

South West 670 3,355,000

West Midlands 747 3,740,000

Yorkshire and the Humber 602 3,014,000

Wales 566 2,834,000

The findingsContinued

On top of this figure, there are additional savings to the public purse in terms of Jobseeker’s Allowance.

The number of young people aged 24 and under who have claimed Jobseeker’s Allowance for a year or more has increased dramatically since before the recession started in January 2009.

Region Percentage increase since before the recession – January 2009

Number of young people aged 24 and under claiming Jobseeker’s Allowance for a year or longer (Figures taken from Nomis, January 2011)

1200 1500 1800 2100 2400 2700 3000 3300 3600 0 300 600 900

North East December 2008: 380

December 2010: 720 89%

North West December 2008: 790

December 2010: 2,350 197%

Yorkshire December 2008: 395and the Humber December 2010: 2,325 489%

East Midlands December 2008: 360

December 2010: 1,945 440%

West Midlands December 2008 1,140

December 2010: 3,555 212%

East December 2008: 345

December 2010: 1,240 259%

London December 2008: 730

December 2010 1,510 107%

South East December 2008: 450

December 2010: 1,600 256%

South West December 2008: 250

December 2010: 515 106%

Wales December 2008: 475

December 2010: 1,485 213%

Lora started to make her own jewellery and, finding that she loved this kind of creative work, she felt inspired to start up her own jewellery business with the help of The Prince’s Trust.

Business is now booming. Lora now has

her own workshop in the Jewellery Quarter of Birmingham and has 38 stockists across the UK and Europe. Top magazines such as Vogue and Cosmopolitan have featured her products and Lora even designed a piece of jewellery for HRH The Duchess of Cornwall.

Lora had a tough start in life, growing up in an area where underachieving at school and getting pregnant at a young age are the norm. But Lora wanted more out of life.

Case study:Lora Leedham

By his mid-twenties, Mark was registered disabled. The Trust supported Mark’s business plans, helping him back into work.

As a once high achiever, Mark was shocked

to find that he was being rejected at the interview stage for jobs. This led to low self-esteem and emotional problems.

Mark was unemployed for 18 months and, during this time, carried out some research. His findings showed major parcel delivery companies ran sufficient vehicles to meet 80 per cent of their deliveries and subcontracted the rest through local operators. Mark felt he could service this demand and took his proposal to Nightfreight. They agreed to a contract and Mark came to The Trust to help him make this business a reality.

In 2007 Parcel Partners had two vans and one customer. They now have 30 vans and more customers, including FedEx, UK Mail, CityLink and Medline. The company is expected to turn over in excess of £2m this financial year.

Mark is now married with two children and has a lovely home. His life is back on track and he’s very positive about the future.

Mark enjoyed sport as a young man but, at 18, developed the onset of muscular dystrophy.

Case study:Mark Livsey

Lisa became pregnant but, when her boyfriend went to prison, their relationship fell apart. She then studied as a beautician with the dream of running her own salon, but she met another man and fell pregnant again.

Tragically, seven months into the pregnancy

Lisa’s baby died. She became pregnant again but after her son was born, Lisa suffered severe post natal depression. With two young boys and no income, Lisa felt her dreams of running her own salon were lost. She contemplated suicide.

However, after finding premises to rent, Lisa contacted The Prince’s Trust about a business loan. After a successful application, Beauty Secrets was born.

The salon, located in a busy area of Belfast, offers beauty treatments and holistic therapy and has created a sanctuary where the community can relax. Lisa plans to return to study so that she can teach beauty and eventually hopes to open another salon.

When she was 14, Lisa left school without any qualifications.

However, after a loan from The Prince’s Trust she now runs her own business.

Case study:Lisa Dunlop

About The Prince’s Trust

The Citi Foundation is committed to the economic empowerment of individuals and families, particularly those in need, in the communities where we work so that they can improve their standard of living.

About the report’s supporter, The Citi Foundation

Globally, the Citi Foundation targets its strategic giving on its priority focus areas: Microfinance and Microenterprise, Small and Growing Businesses, Education, and Financial Education and Asset Building. The Citi Foundation works with its partners in Microfinance and Microenterprise and Small and Growing Businesses to support environmental programs and innovations.

The Prince of Wales’ charity has helped more than 600,000 young people since 1976 and supports 100 more each working day. Last year, more than three in four young people supported by The Trust moved into work, education and training.

Youth charity The Prince’s Trust helps change young lives. It gives practical and financial support, developing key workplace skills such as confidence and motivation. It works with 14 to 30 year-olds who have struggled at school, have been in care, are long-term unemployed or have been in trouble with the law.

The Prince’s TrustHead Office18 Park Square EastLondon NW1 4LH

Telephone020 7543 1234Fax 020 7543 1200Emailinfo@princes-trust.org.uk

Further information about The Prince’s Trust is available at:princes-trust.org.uk or please call: 0800 842 842.

DSN1304 © Prince’s Trust 2011 - all rights reserved. The Prince’s Trust is a registered charity, incorporated by Royal Charter, in England and Wales (1079675) and Scotland (SC041198).

Further information about The Citi Foundation is available at Additional information can be found at: citifoundation.com

Today’s Young People;Tomorrow’s Economy

Supported by: