Prime Minister Pledges to Support 40,000 Start-ups
New entrepreneurs will have access to funding as part of the extended New Enterprise Allowance
David Cameron has announced plans to support over 40,000 start-up businesses over the next two years, by offering loans and grants to help entrepreneurs get their ideas off the ground.
The New Enterprise Allowance, which was first launched in October, has been extended in a bid to improve the way the Government supports new businesses.
The scheme will give unemployed people – who can demonstrate that they have a solid business plan – access to allowances of ┬ú1,275 over six months, with a further loan of ┬ú1,000 available from Jobcentre Plus. They will be supported by volunteer mentors from local business communities to help with business planning.
The scheme is only open to those people that have been claiming Jobseeker’s Allowance for six months or more, of which the Federation of Small Businesses (FSB) has expressed disappointment. However, with the looming public sector cutbacks and job losses, the FSB expects more people to be setting up their own businesses, and expects that the scheme will be beneficial.
According to The Guardian, an FSB spokeswoman commented: “With the public sector cuts there are going to be more people out of work and looking to set up new small businesses, so this is something that will help people to do that.”
Business and enterprise minister Mark Prisk said that is has “never been more important” to promote the merits of enterprise in the UK, adding:
“It is vital that businesses have the information, advice, and mentoring they need to grow and expand. The best people to advise small businesses are those who have already started and run successful companies, so it is particularly important that this new framework focuses on providing access to business mentors.”
The scheme will be launched in Merseyside in January and is expected to be rolled out across the country by the autumn.