Give us a call for more info 1-800-210-5649
Skip to content

Funding helps new businesses set up

downloadA new measure has been successful in aiding people set up small businesses in the United Kingdom. The New Enterprise Allowance has led to 46,000 various entities being created. These businesses range from a gas engineering firm, a vintage clothing shop, to a drama school and a college for children that have learning difficulties.

Employment Minister Esther McVey predicts that this budding new generation of entrepreneurs could impact the creation of the jobs of the future. She stated that the success of Great Britain as a united country is dependent on the individual successes of these small businesses.

The program has experienced a steady flow of creation with 2,000 businesses being set up per month during the last year.

The program also lessens the burden on social services. Now people who were once claiming benefits are gradually becoming independent. As much as £1,200 is available to those on sickness benefits, single parents or people on a jobseeker’s allowance.

It is important to note that the allowance doesn’t impact any housing benefit, tax credits, income tax, or access to a work grant. Also, eligible applicants for the New Enterprise Allowance can apply for a loan to assist with start-up costs, which must be paid back. The New Enterprise Allowance also provides mentorship for the thousands of small businesses.

Based on the data thus far 10,610 businesses have been set up by people whom are 50 years old and higher, 3,370 by young people and 8,590 by disabled people. Not only will the creation of these new businesses directly impact them by allowing them to eventually get off benefits, it will likely spur further job creation allowing others to get off public benefits as well.

Making small business funding available to this particular group of benefit recipients has effectively provided a stepping stone to those who need it most. In giving this assistance the country can benefit both by minimizing dependence on public benefits and also in the retribution factor wherein which these new businesses will continue to push the economy forward.

For small business funding contact First American Merchant Today!