We need an enterprise revolution to tackle the scandal of youth unemployment

The coalition has failed to help would-be entrepreneurs innovate their way into work. Labour will show that we can do better.

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.

The report is urgently needed. This week, we learned that the government’s much vaunted plan to help would-be entrepreneurs innovate their way into work is miles short of hitting its target. The New Enterprise Allowance was supposed to support 40,000 people set up shop. But it’s still 35% short of hitting its goal – and a measly 6% of young people have received help. We think we need to do better than that.

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.

Next, we have to look at enterprise in schools. Young Enterprise for example, reckons that 42% of their alumni start a business during their career. That’s nearly twice the rate for those who join their programme. And finally, we need to think about how we measure outcomes a little better so that we know what works and what doesn’t.

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.

Liam Byrne MP is a former technology entrepreneur and shadow work and pensions secretary

Chuka Umunna MP is shadow business secretary

Unemployed young people stand in line outside a job centre in London. Photograph: Getty Images.
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Why a group of Brunel students walked out on Katie Hopkins instead of no-platforming her

"We silently walked out because Ms Hopkins has the right to speak, but we also have the right to express our discontent."

Earlier this week, columnist and all-round provocateur Katie Hopkins turned up to Brunel University to join a panel in debating whether the welfare state has a place in 2015. No prizes for guessing her stance on this particular issue

But as Hopkins began her speech, something odd happened. Around 50 students stood up and left, leaving the hall half-empty.

Here's the video:

As soon as Hopkins begins speaking, some students stand up with their backs to the panelists. Then, they all leave - as the nonplussed chair asks them to "please return to their seats". 

The walk-out was, in fact, pre-planned by the student union as an act of protest against Hopkins' appearance at an event held as part of the University's 50th anniversary celebrations. 

Ali Milani, the Brunel Student Union president, says he and other students knew the walk-out would "start a conversation" around no-platforming on campuses, but as he points out, "What is often overlooked (either purposely or as a result of the fanfare) is that the conversation at no point has been about banning Ms Hopkins from speaking on campus, or denying her right to speak."

Instead, students who found her appearance at the welfare debate "incongruous" and "distasteful" simply left the room: "We silently walked out because Ms Hopkins has the right to speak, but we also have the right to express our discontent."

Milani praised the student body for treading the line between freedom of speech and expressing their distaste at Brunel's decision: 

"They have respectfully voiced their antagonism at the decision of their institution, but also . . . proven their commitment to free of speech and freedom of expression."

The protest was an apt way to dodge the issues of free speech surrounding no-platforming, while rejecting Hopkins' views. A walk-out symbolises the fact that we aren't obliged to listen to people like Hopkins. She is free to speak, of course, albeit to empty chairs. 

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.