New Start Up Business Boost in Deprived Areas

New Start Up Business Boost in Deprived Areas.

The government has confirmed it is to extend the New Enterprise Allowance loan support scheme for new business start-ups and ‘beef it up’ in deprived areas.

A review commissioned by Secrtary of State for Work and Pensions, Iain Duncan Smith and conducted by Baroness Mone OBE, found that self-employment rate in Britain stands at 10% of the working age population, however in the most deprived areas, people are narly 50% less likely to be self-employed.

• improving access to start-up loans
• strengthening the quality of New Enterprise Allowance (NEA) support to achieve stronger and more viable businesses
• encouraging existing self-employed people to mentor new business starters
• asking schools, local authorities and government to look further at how business skills can be taught to pupils

Comment

Baroness Mone is best known for building the global Ultimo Bra business, starting from a tough Glasgow neighbourhood having left school at 15 with no qualifications. She was perhaps the ideal person to conduct this review.

It is clearly more difficult for people in deprived areas to access start-up capital from family or friends, as usually they have no money, all banks will not lend them money. We fully support the government in helping more people to become entrepreneurs.