The majority of entrepreneurial jobseekers are still in business, more than a year after launching their start-up, according to the Government. 
A survey of 1,500 participants of the New Enterprise Allowance (NEA) shows that 80% of ventures started with NEA support are still trading – with more than nine in ten of these going for over 12 months.
Around half of respondents report an expansion in their customer base (55%) or an increase in turnover (47%) since starting their business. The majority of survey participants also say they have plans to grow their company in the coming years.
The NEA initiative is delivered through Jobcentre Plus and says it offers expert mentoring and financial support to jobseekers, lone parents and people on sickness benefits who have a good idea to set up their own business.
Set up in 2011, the latest statistics show almost 77,000 businesses have started with NEA funding and support. One in five (20%) of all businesses created using the NEA have been set up by benefit claimants with a disability. The NEA survey found that recipients started businesses in a wide range of sectors including retail, car repair, construction and professional services.
Employment Minister Priti Patel said:
“This government is determined to help jobseekers with real entrepreneurial ambitions turn their ideas into successful business ventures which create new jobs, boost productivity and contribute to long-term economic growth.
“The first year of trading is considered the most challenging, so I’m delighted that through our New Enterprise Allowance and added support services we are helping businesses stay on track and grow 12 months in.”