In the last month alone, the Government-backed initiative has helped to start 1,000 new enterprises.
The Start-Up Loans Company, which administers the scheme, provides loans of up to £4,500, as well as support to people aged between 18 and 30 years old.
Prime Minister David Cameron said the success of the initiative shows that young people "have got the ideas, the ambition and sheer commitment to get ahead".
The scheme has already reached its £10 million pilot spend and an extra £5.5 million of funding was approved yesterday in Parliament to fulfil its pipeline of young businesses until the end of the financial year. The Government has made £117.5 million available to fund the Start-Up Loans scheme up to 2015.
Former Dragons’ Den star James Caan, the chairman of the Start-Up Loans Company, said that at the moment 40 people a day are choosing to start their own business via the scheme.
"While we are well ahead of our target numbers, I believe that we are only scratching the surface," he added.
“As an entrepreneur myself who has built businesses, I am very conscious that maintaining our own costs when we are spending money on behalf of the country is absolutely vital in the current economic environment. Using our own entrepreneurial approach, I’m pleased to see that we have come in under budget for expenditure.”
