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.
So
far 46,000 businesses have been set up through the New Enterprise Allowance
(NEA) 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 government’s plan to back enterprise and small businesses,
the NEA 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
tens of thousands of budding entrepreneurs 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 (17 June 2014) 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 NEA.
The NEA 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
Department for Business, Innovation & Skills start-up loan
scheme.
Mentors also continue to give the budding entrepreneurs
on-going support during the early months of trading.
Case studies
Mike Covell, 35, from Hull
Mike used his knowledge of true crimes in Yorkshire to
launch a tour company. The ‘Amazing Hull Tours’ started last year
with help from the NEA, and recounts the gruesome and darker side of the
city’s history, including Jack the Ripper. He’s now secured film
and reviewer roles and as a result of building his reputation, will be starring
alongside Hollywood stars Mischa Barton and Jack O’Halloran in an
historical film.
Hayley Thomas, 29, from Haverfordwest
West Wales entrepreneur Hayley turned her redundancy
into an opportunity by following her dream to set up Lion’s Den – a
children’s play centre, which gives parents the chance for a few hours to
themselves on their Pembrokeshire holidays. So successful has her venture been,
that she has branched out to open an on-site café and pre-school nursery
and now employs 17 members of staff.
Adrian Martin, 65, from London
After being made redundant from his job as a transport
manager for a logistics company, Adrian Martin identified a gap in the market.
With bus and lorry drivers now having to comply with the new Driver Certificate
of Professional Competence, Adrian approached NEA for help in setting
up a training business. Drivers must now have a thorough understanding of
European Regulated driving hours and regulations, how to secure loads safely
and keep within weight regulations. Adrian is now generating lucrative
contracts and expanding his business.
More information
Read the full breakdown of NEA statistics
(April 2011 to March 2014)