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Self employment and Economic Development in Welfare to work. Stuart Vere, Chairman Avanta. Enterprise – a missed opportunity?. Enterprise Facts:
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Self employment and Economic Development in Welfare to work Stuart Vere, Chairman Avanta
Enterprise – a missed opportunity? • Enterprise Facts: • c. 16% of working age people are self employed. It is forecast that this will be 20% by early 2020’s – should 16% be the minimum target for DWP Jobseekers to move into Self Employment? • 60%+ of employment is in SME’s • SME’s are generally the backbone of local economies • Self employment creates SME’s and Micro Businesses (75%+ of SE businesses created by Avanta survive at least 5 years and at c. 3 years will employ 1.6 staff per business and at 5 yrs 4.2. Almost 40% of Avanta ND Self Employment startups were in hard to help groups inc 25% disabled) • 6% of businesses started will become high growth businesses - but ............................................... • you have to start 100 to get 6
Enterprise – In a better place? • 2005 DWP – 10k new businesses per annum (NDSE) • NEA • 12k pa “allowance starts” (current run rate. Probably less actual trading businesses) 25% allowance starts from referral. “Allcomers” InBiz research trial - 50% into business from referral. • Welcome day 1 eligibility • Unlikely to achieve its target of 44,000 start ups over 2 years even with extended period of provision to Sept 13. (60%?) • Is it the best, most effective way forward for Enterprise creation from the unemployed? Or just a cheaper and as yet unproven alternative to previous provision? • No consistent approach to Enterprise provision in Work Programme • Probably less New Start ups being created through government initiatives • RDA’s, BL’s no longer exist. Routes for start ups generally unclear or too light touch e.g. BL Websites ? • Role for Localism? • Is there a coherent “joined up” enterprise agenda between BIS and DWP or indeed at Regional/Local levels?