Entrepreneurial jobseekers helped by the Government still in business a year later
The majority of entrepreneurial jobseekers who launched their start-ups using a government scheme are still in business a year later.
In the survey of 1,500 jobseekers, 47% reported an increase in turnover since trading plus the majority planning to grow their business in the next few years.
The NEA scheme has helped launched around 77,000 start-ups since it was introduced in 2011 to financially support those on benefits.
Around 20% of these businesses, trading in different parts of the industry, were also started by those claiming sick benefit.
Employment Minister Priti Patel said: “The first year of trading is considered the most challenging, so I’m delighted that through our New Enterprise Allowance and added support services we are helping businesses stay on track and grow 12 months in.
“This government is determined to help jobseekers with real entrepreneurial ambitions turn their ideas into successful business ventures which create new jobs, boost productivity and contribute to long-term economic growth.”
The NEA initiative is delivered through Jobcentre Plus and offers expert mentoring and financial support to jobseekers, lone parents and people on sickness benefits who have a good idea to set up their own business.