Area youth now have the opportunity to pursue entrepreneurial opportunities thanks to a new program The Callaway Bank recently launched.
The bank's Youth Entrepreneur Program (YEP) was established for high-school age students interested in pursuing a project or business venture, but need help with funding. The YEP offers low-interest loans up to $1,000, according to a The Callaway Bank press release.
The release also states that young people often run into funding road blocks when pursuing a startup as they face high fees and rates. That was the case for a high school student who needed financial assistance with an FFA project last summer. When he asked the bank for a loan, The Callaway Bank's President and CEO Kim Barnes said it didn't have anything available for him. This sparked the idea for the YEP.
"We recognized an opportunity to not only support him, but many other students in our communities who also have good entrepreneurial ideas," Barnes said in the release. "Often the students cannot pursue their ideas because the cost is prohibitive. Our YEP will allow them an opportunity to move forward and pursue their entrepreneurial ideas."
But the program doesn't start and end with financial backing. The YEP also offers students business mentorship with guidance in preparing a budget, business plan and presentation for a loan request. Projects must be completed through a school organization, like FFA or FBLA for example, and the advisor - along with The Callaway Bank - will supervise the project and loan. Parents and guardians co-apply for the loans.
"Students today aren't limited by the same obstacles they were even 20 years ago," Barnes said in the release. "Technology lets them build a business with much more flexibility. Likewise being an independent bank gives us the flexibility to create a program to support them and our communities. By offering mentorship, we can give them structured, guided start and watch them take off."
Jeff Jones, The Callaway Bank's chief communications officer, said young people will also learn the balance of paying back a loan with making a profit. Giving students this chance at an earlier age, allows them to understand the loan process before they may do the same in the professional world, Jones said.
"It's kind of like they have training wheels on (with the YEP)," Jones said.
He added that business people tend to be passionate about their projects, getting caught up in the idea and lacking focus on the logistics. The program will also aid students in their overall professionalism, Jones said.
"They'll have a better sense of understanding and have it planned out," Jones said. "It makes their chances of success even better (in the future)."
The Callaway Bank's focus on small business growth prompted it to create the YEP, Jones said.
Organizations like the Show-Me Innovation Center have spurred support of local businesses, while stressing the importance of the community to support them. Jones said he hopes the YEP will help "energize" that movement.
"We're hoping this lifts momentum by getting students involved early on," Jones said.
Debbie LaRue, The Callaway Bank's director of marketing and public relations, said the YEP is an investment in what's to come for Callaway County.
"(Students) are our future," LaRue said. "Young people have ideas - they have good ideas. They are our future leaders."