More than 40,000 budding entrepreneurs helped off benefits
28 Mar 2014 12:32 PM
More than 40,000
people have moved from claiming benefits to running their own business thanks
to a government scheme that helps unemployed people turn their dreams of
becoming their own boss into a reality.
These new businesses range from weight loss coaching and
a vegan restaurant to a bespoke wedding service and a building
firm.
Since its launch in 2011 as part of the
government’s long-term economic plan to back small businesses and help
people into work, the New Enterprise Allowance (NEA) has created 40,240 new
businesses – that’s around 2,000 people every month in the last
year helped to get off benefits and set up on their own.
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, which Minister for
Employment Esther McVey has heralded as creating a new enterprise
generation.
Minister for Employment Esther McVey
said:
Small businesses are the heartbeat of the continuing
success of the country, so it’s great that tens of thousands of budding
entrepreneurs have been helped to make their dreams of becoming their own boss
a reality.
As
the economy continues to grow this new enterprise generation may well go on to
become the employers of the future, which is great for the individuals and
their families, but it is also good news for the country as
well.
It’s particularly welcome that so many women have
started their own business through NEA. This shows the benefit of having
an expert mentor, and I’d like to encourage more business experts,
especially women, to sign up to help the next generation of entrepreneurs
secure their future.
The
figures also show that the scheme helps people of all ages, with 9,260
businesses started by people aged 50 and over, and 2,910 young people also
becoming their own boss. 7,420 disabled people have also set up in business
thanks to the NEA.
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
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
Nathan Hewitt, 23 Cardiff
A
slimmer who was once one of Britain’s most obese children has set up a
weight loss coaching business with support from the NEA. Nathan Hewitt,
from Merthyr Tydfil, weighed 23 stone when he was just 15 but created his own
fitness plan to lose half his body weight before he was 20. He is now helping
others to do the same with one-to-one coaching and seminars, and plans to go
into schools to help tackle the growing problem of childhood obesity. He has
launched a successful business, ‘Try This for Size’.
‘
‘Skills Instructor’ Peter Groom, 50,
Staffordshire
After gaining years of experience in the environmental
and nature industry, Peter Groom has started his own business as a Primitive
Skills Instructor. Peter now runs bush craft and primitive survival skills
courses, where he teaches, bows and arrows skills, tan buckskin making,
tracking, camouflage, stalking, flint knapping and identifying wild edible
plants.
Inga Dirzuit, 23, Shalesmoor – Full Steam
Ahead
When Inga Dirzuit became unemployed and found the
process of looking for a new job unfruitful, the 26 year-old began to think
about her lifelong love of cooking and the knowledge that she had gained about
healthy eating and healing food remedies. Inga has now opened a vegan
restaurant, Pure On Raw, opened in Shalesmoor just over a year ago and business
is booming. Inga has expanded into food box and juice detox production which
has attracted customers nationwide and also delivers educational cookery
classes. She is even penning her first vegan recipe book!
Kelly Redhead, 23, from Sheffield
A
23-year old who developed a business KMR Bespoke Bridal Designer, a
made-to-measure bespoke wedding and occasion wear service. Her business was
even recommended in the latest issue of Vogue, for its unique designs and
excellent service
Simon Short, 16, ex-offender who now delivers education
and training to ex-offenders to help reintroduce them to life outside of
prison
A
Grimsby entrepreneur, who had himself spent 16 years of his life in and out of
custody, is calling on more ex-offenders to take advantage of support available
to help them set up their own business.
Simon Short, who set up education and training social
enterprise, The Intelligence Project. The 31-year-old is speaking from
experience, having left prison over two years ago only to endure a
“dehumanising experience” doing factory work as part of an
agency.
More information
Read the full breakdown of NEA statistics (April 2011 to December 2013)
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