New Enterprise Allowance could help 40 000 new businesses

The Government has launched exciting plans to expand the scope of the New Enterprise Allowance (NEA), which it hopes will create 40 000 new businesses by 2013. The NEA will provide up to £2000 to unemployed people who want to start their own business. The scheme will be available to twice as many people as was originally planned. It will give people who have been unemployed financial support for their early months of self-employment, access to a start-up loan, and an expert business mentor to help guide them through the first stages of business.

The scheme will be piloted in Merseyside, with the hope of being offered nationwide by autumn 2011. Recipients will receive their usual benefits for the first three months followed by a reduced amount for the next three months so that they can support themselves while they launch their businesses. There will also be access to start-up loans of £1,000 to help with expenses.

The government has recognised that small and startup businesses are crucial for rebuilding our economy, and this scheme is therefore a great step in the right direction.

This post was brought to you by Claudia Graham at Companies Made Simple

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