Cameron reveals plans to support 40,000 new enterprises

The prime minister David Cameron will today unveil plans to support the creation of 40,000 new businesses over the next two years by offering loans and grants to budding entrepreneurs.

First launched in October, the New Enterprise Allowance was originally expected to assist half that number of start-up firms, however the new target forms part of a significant overhaul of the way the government supports new businesses. The scheme will be launched in Merseyside this month, with a national rollout expected by autumn.

Under the scheme, unemployed people who can prove they have a robust business plan will receive allowances of £1,275 over six months. They will also be connected to volunteer mentors from local business communities who can assist with business planning and if their plans are strong enough, they may then receive a loan of up to £1,000 from Jobcentre Plus to cover start-up costs.

Mr Cameron is expected to say: “It is vital that we ensure businesses, and those people who find themselves out of work but have the drive and desire to set up their own business, have all the advice, support and mentoring they need. Together we can make the years ahead some of the most dynamic and entrepreneurial in our history.”

Other measures introduced by the government to boost business support includes the closure of regional Business Link advice centres by November 25, which will be replaced by a combined website and contact centre to support general business enquiries.

Business minister Mark Prisk also announced the re-launch of the Business Link website in April which will contain new features and a searchable database of central government contracts.