The New Enterprise Allowance scheme in the UK is being rolled out to help the longer term unemployed to start a new business.
The New Enterprise Allowance scheme is open to anyone who has been claiming Jobseeker’s Allowance for 26 weeks and has a viable idea for a business.
It helps fund the move from unemployment to self employment by providing an allowance of £65 a week for the first 13 weeks then £33 a week for a further 13 weeks.
This is essential support because it often takes some time for a new business to start generating cash and it solves teh problem of finding the time and mental commitment to start a business when you have to be available for employment.
I understand that people will be able to work with a mentor for free and get advice on how to make the business successful - I'm not sure how this works at this stage and what kind of people will be giving free advice. Feedback I had from business owner who tried the old Business Links was very mixed because of the public sector/bureaucracy conflict.
People who take part in the New Enterprise Allowance will also be able to apply for a small loan to help start the business - up to £1,000.
Just reading the guidelines reminds me how much I hate the public sector and how far the spirit is away from that needed toe be an entrepreneur. However I welcome the New Enterprise Allowance as a general way to help the longer term unemployed to become self employed.
I think it's a shame it is not available faster than 26 weeks, since any "get up and go" may have already got up and gone.
To find out about the allowance, go to any JobCentre Plus office.
What Do You Think About The New Enterprise Allowance?
Leave a comment and let me know what you think.
Will it help you to become self employed?