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September 13, 2013

New £69 million support package for start ups

The Government has announced new financial support worth £69 million to enable more British entrepreneurs to start their own businesses.

The funding will be made available through Start-Up Loans and the New Enterprise Allowance.

Prime minister David Cameron said the funding could create tens of thousands of new businesses, providing jobs and boosting the economy. Over 30,000 new businesses have been created with support from government schemes in the past two years.

The new support package includes:

  • Business mentoring and funding for people who are unemployed and want to start a company. The New Enterprise Allowance will be extended for new starters up until the end of 2014, providing an additional 60,000 mentoring places for claimants. The scheme has already helped to create more than 26,000 businesses.
  • £34 million for Start-Up Loans to support around 7,600 businesses. The Start-Up Loan scheme helps people to get their business ideas off the ground with a loan of around £4,500 and mentoring support. The new funding will provide more loans for those over 30 and specific support for ex-Service personnel. The scheme will also be rolled out in Scotland and Wales.

David Cameron said: "In the last two years we have helped tens of thousands of people to turn their ideas into a viable business, and this additional support will help thousands more.

"My message is simple: if you have drive, determination and are prepared to work hard, we will back you. The number of people in the UK involved in setting up or running a new business has increased in recent years and the government wants to ensure that continues."

The New Enterprise Allowance offers expert business mentoring and financial support to people living on benefits. The most recent figures (published August 2013) show that beneficiaries of the New Enterprise Allowance represent all ages, with more than 6,000 businesses started by people aged 50 or over. Almost 4,500 disabled people were also helped by the scheme to become their own boss.

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