Government scheme helps start thousands of new businesses.
More than 4,600 businesses have been set up in the West Midlands thanks to a Government scheme that helps unemployed people turn their entrepreneurial dreams into a reality.
Across Britain around 2,000 businesses a month have been set up over the past year by people who have moved from claiming benefits to being their own boss through the New Enterprise Allowance, with businesses ranging from a college for children with learning difficulties and a vintage clothes shop, through to a drama school and gas engineering firm.
As part of the UK Government’s plan to back enterprise and small businesses, the New Enterprise Allowance offers expert mentoring and financial support to people on Jobseeker’s Allowance, lone parents and people on sickness benefits who want to start up their own business.
Minister for Employment, Esther McVey, said: “The continuing success of Great Britain is built on the hard work and ingenuity of small businesses up and down the country, so it’s great that as part of the government’s long-term economic plan we’ve been able to mentor 4,670 budding entrepreneurs in the West Midlands to help make their dreams of becoming their own boss a reality.
“As the economy continues to grow this new generation of entrepreneurs may well go on to create the jobs of tomorrow, helping even more people to get off benefits and build a career.”
Today’s figures also show that the scheme helps people of all ages, with 10,610 businesses started by people aged 50 and over, and 3,370 businesses started by young people. 8,590 businesses were set up by disabled people thanks to the New Enterprise Allowance
The New Enterprise Allowance is available to people over 18 who are claiming Jobseeker’s Allowance, lone parents on Income Support, or people on Employment and Support Allowance in the work-related activity group.
People on the scheme get expert help and advice from a business mentor who will help them to develop their business idea and write a business plan. If the business plan is approved, they are eligible for financial support payable through a weekly allowance over 26 weeks up to a total of £1,274. Participants can also access a loan through the BIS start-up loan scheme. Mentors also continue to give the budding entrepreneurs on-going support during the early months of trading.