New Enterprise Allowance: 120 business start-ups

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A SCHEME to help unemployed people start their own business is proving a hit in the East Riding and East Hull with over 120 new businesses being set up.

The New Enterprise Allowance (NEA) is part of the government’s back-to-work programme targeted at those who have been unemployed and claiming Jobseeker’s Allowance for more than six months. The programme offers support and mentoring to those considering self employment.

Under the NEA an allowance is paid to participants of £65 for 13 weeks, and then £33 for a subsequent 13 weeks (a total of £1,274 over 26 weeks) which replaces Jobseeker’s Allowance while the business develops. A loan of up to £1,000, with generous repayment terms, is also available to help new entrepreneurs with capital and start-up costs.

In East Hull and Holderness then the NEA support and mentoring role is undertaken by the Hedon-based Sirius Business Advice Centre. It has helped over 70 businesses to start-up in the area. Sirius also run FREE Book keeping and Marketing workshops for any business in the area that wishes to benefit.

The East Riding Council’s business services team delivers the NEA in the rest of the East Riding, and they have helped more than 50 businesses start-up. The Government estimates that the NEA will support the creation of up to 40,000 new businesses across the UK by March 2013.

If you have been getting Jobseeker’s Allowance for over six months, have a business idea, and are interested in finding out more about New Enterprise Allowance, talk to your Jobcentre Plus adviser in the first instance.

Are you already on the New Enterprise Allowance, or been on it? Do you have experiences to share? Leave a comment below.

Visit: DirectGov Website – New Enterprise Allowance

About the Author

Ray Duffill (Editor)
Ray Duffill (Editor)
Ray Duffill (photo by Neil Holmes) is a former community development manager but now describes himself as a beat-blogger or citizen-journalist. Ray lives in Hedon and also edits the Hedon Blog and is the Hedon correspondent for the Holderness Gazette.

2 Comments on "New Enterprise Allowance: 120 business start-ups"

  1. Darryl Dearing | June 13, 2012 at 10:50 am | Reply

    Speaking as someone who has previously been a recipient of the so-called ‘enterprise allowance scheme’, which incidentally is not a new scheme! I received my funds back in the late 80’s, at which time it was £25 a week for 52 weeks. Over the year this is actually more than it is today. With inflation factored in unfortunately what they are offering is pitifully inadeqaute to either start or assist in starting a new business.
    Iam a succesful business owner and for the past 10 years have run my business without need for government hand outs.
    In my opinion, what start up business’ need is not small amounts of money for a few weeks (26 weeks is no time at all). What they need is £2000 in their hand at the start and a year of support, which could be an amount of £50 per week or a loan or a mix of weekly funds and a small loan. this would clearly have to be qualified with an extremely good business proposal and have a mentor to work with that business person. It is ALWAYS start up costs that kill a business and quite frankly £65 wont let you start anything.
    Note, if anyone out there is wanting to start a new business and would like a mentor, I would be more than happy to, for no charge, assist where I can. I have succeeded so anyone can!

    • darryl clappison | June 21, 2012 at 8:57 pm | Reply

      hi darryl my name is darryl im 28 and im a scaffolder ive been at a scaffolding firm for 7 years me and my friend are thinking of starting up our own business we have a van and some scaffolding and started doing odd jobs i would appricate any advice you could give us as we dont really know what to do now im frightend of jumping into the deep end and loosing all i have at the minute thanks darryl

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