Region is national entrepreneurs hotspot.
More new businesses have been set up by jobless benefit claimants in Birmingham – using the Government’s New Enterprise Allowance – than in any other local authority in the Midlands, according to new official statistics released by the Department for Work and Pensions. And the city is second in the list of all local authorities in Britain for the number of start-ups.
A total of 1,100 new businesses have been created in Birmingham since the scheme was introduced in April 2011, second only to Liverpool, where 1,270 new businesses were set up. Birmingham is joined in the top ten start-up areas by Dudley, which has seen 720 businesses created by out-of-work benefit claimants.
The West Midlands as a whole contributes almost 7,000 new start-ups to a British total of almost 70,000.
Supporting and growing businesses across the North and Central England is a key part of the Government’s plan to build a Northern Powerhouse. The Government is rebalancing the economy so everyone nationwide benefits from its recovery.
The NEA helps jobseekers, lone parents and people on sickness benefits with a good idea to set up their own business. 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.
DWP Employment Minister, Priti Patel, said: “Through this scheme, we’re helping to unlock the talent and entrepreneurialism of the great cities in the North and Central England, with these areas showing the highest number of jobseekers turning a big idea into a business.
“Starting up in business successfully needs so much more than just funding – it needs the right support and advice at the right time, and we’re doing just that through the New Enterprise Allowance scheme.
“We will ensure that every part of Britain, including the Northern Powerhouse, benefits from a growing economy and that everyone who works hard gets the opportunities they need to succeed.”
The NEA scheme has helped many people in Birmingham including fashion graduate Jada Lynton. Immediately after graduation, Jada secured a dream job in fashion working for up-and-coming London designers. Her time working, as a fashion assistant then a production manager, gave her invaluable experience, taking her to the London and Paris fashion showrooms and teaching her how to hone and develop a new label’s brand and identity.
After two years she decided to branch out on her own and has launched two collections, has new stocklists and sells through her website. She said: “It’s terrifying going out on your own. When my freelance design work started to slow down, I panicked. I was looking for design jobs for a long time but eventually returned to world of fashion retail where I had started before I went to university. It felt like 10 step backwards.
“When I went to an interview to work in retail at Gucci the interviewer asked me what on earth I was doing there with my experience, refused to give me the job and encouraged me to return to design. It reinvigorated me and made me realise I shouldn’t give up so easily.”
“I’ve read that every great entrepreneur has experienced failure at some point on the road to success. Once you get over the idea of it being ok to fail it really opens you up to taking chances and risks that you would otherwise not have taken. You can’t give up. So many young people are disheartened because they don’t realise there is help available for people who want to run their own business, like the NEA.”