1,000 new businesses started in Yorkshire

With the Office for National Statistics poised to release the latest monthly unemployment figures later this morning, Ministers and backbench MPs have hailed the success of the New Enterprise Allowance (NEA) programme, which offers loans, financial assistance and mentoring advice to out-of-work people looking to set up their own businesses.

New figures show that for the first 17 months of the programme since its launch in January 2011, it helped almost 1,000 new firms get started in Yorkshire.

Skipton and Ripon MP Julian Smith, and Brigg and Goole MP Andrew Percy, both told the Commons that take-up in Yorkshire has been “excellent”, and called for information about the NEA and other similar schemes to be made more widely available.

Within Yorkshire, the figures showed Sheffield has seen the highest take-up, with 170 new start-ups in 17 months.

Minister for Employment Mark Hoban said: “These figures show just how well Sheffield has embraced the entrepreneurial spirit. The people of Yorkshire have set a brilliant example that I hope people in other areas will follow.”

One beneficiary of the scheme was Daniel Smith, a 38-year-old architect from Sheffield who set up his own practice with Government help.

“I had always wanted to open my own practice at some point,” he said. “Circumstances around my job forced me to strike out on my own a little earlier than I had originally planned.

“With the benefit of a mentor, funded through the NEA, I was given first class business advice.

“While I didn’t use the loan available, the £65 each week paid for day-to-day living expenses while I found my feet.”