1. New Enterprise Allowance
James Whitley
1 July 2011

2. New Enterprise Allowance
The original Enterprise Allowance scheme...
Some similarities but some key differences:
Local partnerships
Mentors
Capital
Funding mechanism
Critics of the original scheme pointed to:
the emphasis on removing claimants from the unemployment count
the lack of any evaluation of the potential business itself
the relative paucity of support training.

3. New Enterprise Allowance
Aims
To encourage self-employment as a viable route into sustained employment and financial independence for unemployed people
Government cannot do this alone – we want to harness a wide range of talent, ideas and good practice. This requires the help of business, from sole traders to the largest global companies, the public and voluntary sector and local deliverers of services.

4. New Enterprise Allowance
Plans for self-employment
Promote self-employment to unemployed people and, through the New Enterprise Allowance, give up to 40,000 unemployed people over two years access to the advice and support they need to start their own business (DWP Business Plan published 8th November 2010)
Promote the benefits of mentoring and make it easier for small and medium-sized enterprises to find business advice and support from mentors, working with the private and voluntary sectors (BIS Business Plan published 8th November 2010)
Ensure that those looking to start a business can access the information they need online, including about franchising, published in an open and standardised format so that it can be re-used for free by third parties (BIS Business Plan published 8th November 2010)

5. New Enterprise Allowance
Overview
Announced on 5 October 2010 by the Secretary of State for Work and Pensions
Available to Jobseeker Allowance (JSA) claimants who have been claiming JSA for more than six months
Initially available in those areas which face the greatest unemployment challenge.
Phased rollout April (trailblazer from January 2011)
National from August
Key Components:
Participants will get access to a volunteer business mentor who will provide guidance and support as they develop their business idea and through the early stages of trading
Once a customer can demonstrate they have a viable business proposition they will be able to claim financial support, a weekly allowance for 3 months, and then half that rate for a further 3 months
If they need start-up capital, they may also be able access to a loan up to £1,000 to help with their start-up costs
Total package of support could be worth around £2,000 to each claimant who wants to start their own business

6. New Enterprise Allowance
Key elements
Credibility and quality of applications/ partnerships...
Alignment and inclusion of other funding streams
Strong track record of delivery
Experience of engagement with target group
Partnership working including across public, private, third sectors
Credible arrangements for financial control, performance management and stakeholder/ partner engagement

7. New Enterprise Allowance
Key elements
Partnerships – emphasis on local needs/ local volunteers
Volunteer business mentors – emphasis on quality
Business ideas are scrutinised – growth potential
Other support – identifying and accessing/ signposting support
On-going support - first 26-weeks of trading

8. New Enterprise Allowance
The legacy
NEA is not just another scheme:
It’s about creating sustainable businesses with potential for growth
A legacy of community benefit:
A tangible contribution to the local (and wider) economy
Measuring the impact.....
NEA will be evaluated as part of the wider evaluation of the GBW measures

9. New Enterprise Allowance
Trailblazer - early indications...
... are positive:
Lots of interest from mentors, matches made
Low drop out rate
High level of participation
Majority of business plans approved
People are trading

10. New Enterprise Allowance
Working together
New Enterprise Allowance is one part of a much wider strategy for self employment and business growth
Jobcentre Plus will play an important role - but not on its own
To make a difference we will all need to work together to build on the best local expertise and support
Working with businesses and the voluntary sector to recruit and match mentors for unemployed customers
Wrapping local business support provision around the NEA to enhance the offer for unemployed customers
Tailoring provision to match local need
Ensuring joined-up local promotion and provision for everyone considering self employment - not just as part of the NEA
Working with Local Enterprise Partnerships to support enterprise and encourage entrepreneurship amongst jobless customer groups

11. New Enterprise Allowance
Over to you...
Questions?