Green light for more jobseekers to set up businesses

The New Enterprise Allowance (NEA) was set up by the Coalition to offer targeted support to out-of-work people looking to become self-employed.

Successful applicants are offered grants to support them through the early stages of their start-up and for help with initial costs, as well as being given a mentor to offer business advice.

By the end of May the scheme had given grants to more than 2,100 people in Yorkshire, with just under 1,000 of those cases leading on to successful start-up business.

One such case was Dominic Cox, a single parent from Huddersfield, who was out of work for 18 months before an NEA grant helped him become a self-employed electrician. He is now hoping to take on his own son as an apprentice.

Mr Cox, 40, said: “Going back to work has helped me to provide for my kids and given me a purpose in life. My NEA mentor and the enterprise club were always available to help me and the support has been great.

“My eldest son, who leaves school this year, has been accepted as an apprentice electrician at Huddersfield college, which means I can take him on as an apprentice in my business. The NEA will have helped get two people into work – myself and my son.”

Initially the scheme was only available to people who had been out of work for six months.

But under plans to be rolled out this morning by Employment Minister Mark Hoburn, it will be available to every jobseeker to apply for straight away.

“A lot of people say they would really like to run their own business, but are not quite sure how to go about it,” Mr Hoburn said. “They need support and advice to develop a business plan.

“What we have recognised is that sometimes jobseekers come in on day one and say they could set up my own business. So I think it’s right in this situation not to hold them back, but to help them just get on with it.”