The role of Enterprise in Employment Services “It makes good business sense”

Current Enterprise Programmes

• Business Link (web and phone only)• ERDF (varies by region)• Transnational Projects• Enterprise Clubs• New Enterprise Allowance• Start Up Britain • Work Programme ?

2

Best practice and innovation in delivery

• Mentoring (if properly resourced)• Networking and peer mentoring• Self employment support to offenders and

ex-offenders• NEA• Test trading• Specialist advisors• In Work Support• Flexibility in delivery times and locations

3

Best practice and innovation in delivery

• Outside of welfare:

– Reduction in support available • Local Authority – often postcode lottery• Princes Trust (18 to 30) • Prime (over 50)• Historically: LEGI / Bizfizz / Serolli

– Young Peoples Start Up Loans

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What works and why?

• Test trading• One to one sessions• Experienced enterprise advisors• Working Tax Credits • Self Employment Qualifications• Stand alone self employment programmes• Avanta Enterprise (Inbiz) evaluation

5

Current provision

• The Growth agenda

• Loans for Young People

• WP enterprise

• Loss of many enterprise programmes, including:• Solutions for Business

• Business Link Start-Up Programme

• Flexible New Deal

• European Regional Development Fund

• Transnational Projects

• RDA / LA funded provision

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What are the gaps in policy and provision?

• Test trading• Awareness raising sessions • Idea generation• Eligibility criteria / postcode lotteries• Funding and discretionary funds• Careers advice – self employment as a career

option• Grants – we think that lack of grants is NOT a

barrier to enterprise

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What is required within W2W?

• Day one eligibility• Experienced Business Advisors• Providers who understand the

benefits• People who can inspire• Flexible programmes

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Other opportunities within Enterprise

• BIS• DCLG• Local Authorities• DWP• Commercial programmes?• Working with employers

– Response to redundancy?

– Spin outs?

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What’s next?

• Identification of:• The opportunities• Successful delivery models and solutions• The ‘real’ gaps

• Dialogue with:• DCLG• BIS• DWP

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The Case for a Dedicated Programme of Support to Help

Individuals Move from Long Term Unemployment into

Sustainable Self-Employment

Terry Owens

What Can Be Achieved

• 80% survival beyond three years• On average 1.6 people will be employed

per business by the three-year point • 72% remain as lifestyle self-employed• 28% develop into established

businesses mainly employing one to five

• Six of those 28 become significant growth businesses

The Importance of Self-Employment

The Three C’s

• Cash: The unemployed will have generally exhausted any savings

• Confidence: Rejections in job interviews will have severely dented their confidence

• Credibility: Unemployment often leads to debt issues and damaged credit ratings

Why a Dedicated Programme?

• Specialist providers who understand small business

• Empathy with the client group

• Focus on start-up

• Advisors who really understand self-employment

The Cushion

• Successful programmes from the past

• Utilising tax credits

• The Universal Credit proposal

• Enterprise Credit

A Dedicated Programme

• Overcoming the barriers to self-employment

• Peer support

• Business to business support

• Networking

• Use of technology

Dedicated Self-Employment Support for the Unemployed

• Creates significant numbers of sustainable jobs

• Helps new businesses to establish and grow• Works particularly well in areas of deprivation

and high unemployment

6% of start-ups become high 6% of start-ups become high growth businesses but without growth businesses but without

the 100 we do not get the 6the 100 we do not get the 6

Terry Owens – 07812 128625