During Business, Innovation and Skills Questions on Tuesday in Parliament, Amanda Milling MP for Cannock Chase questioned the Minister for Small Business, Industry and Enterprise, Anna Soubry, about what steps the Government are taking to encourage more people starting a business to take up start-up loans.
Speaking about her question Amanda said, “I am passionate about helping small businesses thrive. They are the lifeblood of our local economy and account for almost half the country’s job creation.
I firmly believe that we need to do as much as we can to promote measures which improve and simplify access to finance so businesses are able to grow. Start-up loans are key to this. They are a fantastic initiative from the Government to our most talented entrepreneurs and I am incredibly proud that 22 of the recipients are my constituents and that £140,000 has been awarded between them. That said, I don’t want to be complacent. It is a relatively low number compared to other parts of the UK. I know we have an enormous amount of talent in our area, and I want to make sure they, and other entrepreneurs nationwide, are aware of the support available to them, financial or otherwise. This is why I was so keen to ask what steps the Government is taking to encourage more people to take advantage of this scheme.”
Minister Soubry in her reply to Amanda assured her that the Government was committed to monitoring and improving the information dissemination where needed, pointing in particular to the role that the British Business Bank plays in this.
Since its launch in 2012, across Britain 30,000 people have now benefitted from the Start-Up loan scheme, with £155 million lent to help new businesses get going. This is progress towards the Conservatives commitment to increase the number of loans to 75,000.
The New Enterprise Allowance scheme, which launched in 2011, has helped another 70,000 new businesses set up. The scheme, which is available to jobseekers, and those claiming Income Support or Employment and Support Allowance, gives those with a feasible business idea support from a business mentor to help them develop their plan, and then seed funding if the plan is approved.