THE States should award grants for business start-ups. Little Miss Jones proprietor Serena Gill believes the lack of funding available for people wishing to start their own business is draining the island of its young artistic talent.

And she is concerned that failure to address the problem could lead to a loss of creative thinkers in Guernsey.

‘I feel there is so much backing for the finance industry – Guernsey needs to be diversifying a bit more if it wants to regenerate Town and the Old Quarter,’ she said.

‘I think it’s such a shame to see people studying creative subjects in the UK who want to come back to the island, but can’t because they feel there is no other opportunity outside of finance.’

The 34-year-old accessories boutique owner, who is originally from New Zealand, said her government offers an incentive scheme of up to £6,000 for young entrepreneurs, in addition to assistance with business plans.

‘They’re given a kick-start,’ she said.

‘They come out of university incredibly talented – and this way they’re helped out.

‘Guernsey’s such a pretty, quaint place. You’d think they’d want to encourage these types of businesses a bit more.’

Deputy Commerce and Employment minister Carla McNulty Bauer said the funding issue was under review and would be discussed at this month’s States meeting.

‘Businesses, being viable and competitive, should be able to operate without subsidies,’ she said.

‘Previously the support has been developed in an inconsistent and ad-hoc way and C&E believe that schemes should be framed more on a partnership principle.’

Any future support package that might be considered should also be time-limited and with an end date, she said.

‘This will avoid past experiences whereby measures had remained in place long after the economic circumstances they were originally designed for had changed.’

The other Crown Dependencies also do their bit to help new businesses. Grants are available in the Isle of Man.

The Manx government runs a scheme offering a weekly £50 allowance for the first six months and a grant up to £1,500 to be used for the purchase of business equipment.

A five-day course analysing the business feasibility and giving basic skill training is also on offer.

Applicants who successfully apply for financial assistance are then given specific advice from an adviser for the first 18 months after business launch.

The Guernsey Enterprise Agency does offer free business advice and consultancy. However, there is no financial backing.

‘We are certainly in favour of measures that help diversify the Guernsey economy, as long as they bring real benefits to the island in terms of tax revenue and additional job creation,’ said GEA board member Jason Le Ray.

‘The States provides sponsorship to part cover the costs of the excellent work that is done by the Guernsey Enterprise Agency.

‘In this way, the States is already helping to encourage start-up businesses.’