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 ? 1
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 2
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 3
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 4
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 5
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 6
What is required within W2W? Day one eligibility Experienced Business Advisors Providers who understand the benefits People who can inspire Flexible programmes 7
Other opportunities within Enterprise BIS DCLG Local Authorities DWP Commercial programmes? Working with employers –Response to redundancy? –Spin outs? 8
What’s next? Identification of: The opportunities Successful delivery models and solutions The ‘real’ gaps Dialogue with: DCLG BIS DWP 9
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 growth businesses but without the 100 we do not get the 6 Terry Owens –