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Government launches scheme to boost 40,000 new businesses

By: Hannah McLaverty-Williamson
11 January 2011

Prime Minster David Cameron has announced a new government scheme which will assist in the start up of up to 40,000 new businesses over the next two years.

Mr Cameron is asking the jobless why not start your own business with the help of the New Enterprise Allowance (NEA) scheme? Under the NEA, people that have been claiming unemployment benefits for more than six months will be offered up to £2,000 of financial support, which will include a start-up loan, a weekly allowance and advice from a mentor with business experience.

The programme is to be launched later this month in Merseyside and will be rolled out nationwide by the autumn. To qualify for the scheme, applicants will have to provide a business plan which their mentor has to judge to be viable.

Originally, NEA was only going to be made available to 10,000 people a year and was going to cover 40 per cent of the country however, Mr Cameron said it was decided to double the scale of the scheme with the aim of helping to create 40,000 new businesses by 2013, The Press Association reports.

"Throughout this year and beyond we will be focused relentlessly on supporting growth and driving job creation across our economy. Backing new enterprises to start up and small business to grow will be what transforms our economy and will deliver the many thousands of new jobs we will see created this year," Mr Cameron said.

"It is vital that we ensure businesses and those people who find themselves out of work but have the drive and desire to set up their own business, have all the advice, support and mentoring they need," he added.

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