From the government’s New Enterprise Allowance to neighborhood council strategies, we explore the financial help available to unemployed Men and Women who wish to start their own business
As a jobless aspiring entrepreneur, it may feel like there’s little financial support available to assist you to begin a business.
Banks scrutinize your credit history prior to committing your cash, while investors may be hesitant to back a notion that you have not had the funds to test or prove. Mentorship and peer support, too, appears to come more readily to those who have connections in the business world.
Thankfully though, there is a range of ways unemployed entrepreneurs can acquire financial support — and one of the most popular is by way of business grants.
Which grants are available to unemployed people?
There are thousands of award schemes in action across the UK, each with its own rigorous set of eligibility standards based on what your company intends to achieve, where it’s going to be established, and more.
If you’re not in work, you are by no means limited to schemes which are specifically for jobless people — and there are loads of other grant-awarding bodies around who can accept applications from unemployed in addition to employed individuals.
But with so many schemes offered and all for various functions, it will probably save you time and energy to limit your search especially to company startup grants for the unemployed as you’re likely to match their selection standards, and they’re very likely to supply you with what you most need.
1. New Enterprise Allowance (NEA)
- What’s New Enterprise Allowance?
Run and supplied by the authorities, the New Enterprise Allowance scheme aims to help unemployed men and women become self-employed and start their own companies.
- What will I get out of the New Enterprise Allowance?
If you are eligible and your application for NEA is successful, you will first be paired up with a business mentor. They’ll give you business ideas and assist you to compose a business strategy.
When you’ve completed your plan and it’s been accepted by your mentor, you can apply to receive a weekly allowance, worth around #1,274 and given to you over 26 months, as part of your NEA engagement. You might also then be able to apply for a further loan of around #1,000 from the government to aid with startup costs.
- How can I get a New Enterprise Allowance?
To enquire about getting New Enterprise Allowance, you may either discuss it with your Jobcentre Plus work trainer or call the Universal Credit helpline.
2. Additional UK schemes
If NEA does not seem right for you — or if you would like to explore more options before settling on one — you will find a lot more UK-wide schemes which could help unemployed individuals to begin on their business dreams.
If you’re aged 18 to 30, you may be entitled to a grant out of that the Prince’s Trust, which provides financial assistance to young entrepreneurs who are either unemployed with limited means or are working less than 16 hours each week.
This will provide veterans and service people a company grant of around #7,500, a loan of around #30,000, or a mix of both (though the sum granted will never surpass #30,000).
To find more options, consider consulting with the government’s internet finance finder tool.
3. Local schemes
Alongside the aforementioned schemes, which are available on a nationwide scale, you may discover your local council offers an initiative to help unemployed people to begin or develop their own businesses in your area.
By way of example, Broadland District Council’s startup grant offers #750 to support unemployed aspiring entrepreneurs at the Broadland District of Norfolk. Applicants should submit a business plan and cash flow forecast, and their business must not have begun trading yet.
To find out whether your regional authority provides a grant scheme that’s suited to your situation and your small business, get in contact with them to discuss.