BELFAST BRIEFING:The Prince's Trust helped set up a Derry business when banks initially refused funding, writes FRANCESS McDONNELL

THERE IS a definite chill in the air on Dungiven Main Street that has nothing to do with the wind sweeping down from nearby Benbradagh mountain.

A glance at the boarded-up properties in the Derry village, the glut of houses for sale and the spike in unemployment points to the turbulent local economic climate in a village where people’s livelihoods appear increasingly under threat.

There is, however, at least some escape from the weather, if not the bitter economic conditions, thanks to local entrepreneur Carolann Carlisle. Her “cupcake economics” have not only helped create jobs for local people but have turned a natural flair for baking into a viable, thriving business.

Seven months ago, after nearly two years of planning and preparation, Carlisle established The Cupcake, a specialist bakery and cafe, in the heart of Dungiven. It has quickly become a landmark in the village, and a favourite meeting place for families and friends.

Yet like many people who want to set up their own business, her plans could have fallen flat if she had given up after her first couple of meetings with local banks.

The 26-year-old mother of two, who had no track record in business, got turned down for every bank loan that she applied for.

Carlisle firmly believed her idea to establish a bakery that could produce traditional Irish breads and create innovative patisserie treats would be a recipe for success.

But without the help of one of the largest youth charities in the UK, Carlisle’s business dreams might never have been realised.

The Prince’s Trust in Northern Ireland stepped in to help her after her plans stalled over financing issues.

“The banks were not willing to help me at the start. All they saw was someone who had no experience of running a business and who had also been out of work,” Carlisle says.

“I knew what I wanted to do. I always wanted to set up my own business, and the Prince’s Trust helped point me in the right direction.” Carlisle did secure funding from a local bank in the end, and she was also helped enormously by her mother, who has had her own business for 12 years.

“I got the right advice on where to go to from the trust and, thanks to a combination of bank loans, financial support from the trust, my savings and family and friends, I got my business up and running.”

Today Carlisle employs five people in her bakery and cafe, and has a sideline business which produces bespoke wedding and celebration cakes, which she likes to describe as “edible works of art”.

This week she was named Young Entrepreneur of the Year in the Roe Valley Business Awards in Northern Ireland.

She is optimistic about her chances of succeeding regardless of where the economy is going in the North, although, like every business owner, she is worried about her immediate future.

“It is difficult for everyone; I am very conscious of my prices and catering for local tastes. We do fantastic cupcakes but we also do a great all-day breakfast with soda bread because that’s what people want too.”

According to the Prince’s Trust, for every Carolann Carlisle who takes the leap and goes into business, there are others who cannot get over the first hurdle. For some the biggest hurdle is local banks.

Ian Jeffers, director of the charity in Northern Ireland, said many young people who want to start their own businesses in the North simply have no chance of securing bank finance to get it off the ground.

“Last year we helped 220 young people start their own business, and 97 to 98 per cent of those were turned down by the banks they approached for help.

“They didn’t have the credit history banks need or in some case they had a poor credit history and the banks just don’t try to look beyond that,” Jeffers says.

The Prince’s Trust aims to help 3,000 young people each year in Northern Ireland.

It also provides help to young people who have perhaps been unemployed for some time or have few or no qualifications and who have been in care or in trouble previously.

According to Jeffers, the average loan it provides to new start-ups is in the region of £2,000 – which even in today’s climate is not a huge amount for a High Street bank to stand over.

Jeffers believes that much more could be done in Northern Ireland to help young people “to help themselves”.

He is urging the North to look at innovative ways to create new opportunities for a generation of potential entrepreneurs that could make a difference to the local economy.

Cupcake economics might just be what the North needs to inspire a new economic beginning.