FSB sup­ports call to ex­tend en­ter­prise al­lowance

The Peterborough Evening Telegraph - - Et Business Daily -

THE lo­cal Fed­er­a­tion of Small Busi­nesses (FSB) is sup­port­ing the re­cent call by the All Party Par­lia­men­tary Small Busi­ness Group (APPSBG) to ex­tend the New En­ter­prise Al­lowance (NEA) to en­cour­age more bud­ding en­trepreneurs to use the scheme.

Cur­rent rules al­low job­less en­trepreneurs to ap­ply for fund­ing of £1,274, plus ac­cess to a guar­an­teed loan of up to £1,000 – but only af­ter they have been claim­ing Job­seek­ers Al­lowance (JSA) for six months.

Now the APPSBG is call­ing for the NEA to be made avail­able from day one of sign­ing on to JSA and for funds to be avail­able for a full year to pro­vide £3,692, plus the guar­an­tee of a loan of up to £2,000.

It is con­cerned that the cur­rent fund­ing is too low to en­able bud­ding en­trepreneurs to get vi­able busi­ness ideas off the ground – a view sup­ported by fig­ures from the FSB, which show it costs 14 per cent of small busi­nesses be­tween £2,500 and £5,000 to set up.

Amir Butt, Peter­bor­ough branch vice-chair­man FSB, said: “As this re­port shows, break­ing down the bar­ri­ers to en­trepreneur­ship is cru­cial if we are to turn the econ­omy around.

“We all know that un­em­ploy­ment is wor­ry­ingly high. That is why it is even more im­por­tant to make it more at­trac­tive to go it alone,.

“The cur­rent New En­ter­prise Al­lowance does not achieve this. But if the Gov­ern­ment ex­tends the scheme to make funds avail­able and at higher rate, more bud­ding en­trepreneurs will be en­cour­aged to be­come self-em­ployed.”

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