HC Deb 22 April 1986 vol 96 cc101-2W
22. Mr. Baldry

asked the Paymaster General what are the most recent figures for the success rate of the enterprise allowance scheme.

Mr. Trippier

Since its introduction in August 1983, the enterprise allowance scheme has helped almost 134,000 unemployed people to start their own businesses. The latest statistics show that 89 per cent. of those who enter the scheme are still in business at the end of the year in which they receive support. Recent survey evidence has also revealed that 61 per cent. of recipients who received the allowance for a full year were still in business two years after the allowance stopped, and that for every 100 continuing businesses, 99 additional new jobs had been created.

34. Mr. Stanbrook

asked the Paymaster General how many franchises have received support under the enterprise allowance scheme; and if he will make a statement.

Mr. Trippier

No statistics are kept of the number of franchise businesses supported under the enterprise allowance scheme.

The purpose of the allowance is to encourage unemployed people to set up new and independent businesses. Although franchise businesses are not automatically excluded from the scheme, many franchise agreements restrict the franchisee's freedom of action in important aspects such as source of supplies, prices and market area and they cannot therefore be regarded as independent businesses for the purpose of the scheme.

41. Mr. Waller

asked the Paymaster General if he will take steps to improve business skills training for those joining the enterprise allowance scheme.

Mr. Trippier

People on the enterprise allowance scheme can take advantage of both public and private sector training, including the provision made available through the Manpower Services Commission's training for enterprise programme. In addition, the Commission has introduced a revised system of induction and follow-up of enterprise allowance participants. This new system will include a one-day self-employment awareness session to replace the present two-hour information session attended by all applicants to the scheme. One of the main purposes of the revised system is to highlight the importance of enterprise training and its benefits to the participants' businesses, as well as providing an introduction to basic business concepts. Follow-up monitoring by the MSC will be enhanced to reinforce the emphasis on training and business counselling for participants.

Mr. Freeman

asked the Paymaster General if he has come to a decision as to how the increased number of places available under the enterprise allowance scheme will be distributed around the United Kingdom.

Mr. Trippier

The enterprise allowance scheme applies to Great Britain. There is a similar but separate scheme running in Northern Ireland.

From April 1986, the enterprise allowance scheme has been expanded to 80,000 entrants and places have been distributed by the Manpower Services Commission in accordance with demand, following consultation with MSC regional and area management. From September 1986, the scheme will be increased to an annual rate of 90,000 entrants and again in April 1987 to 100,000. The precise allocations of places will be determined by the MSC after consultation with their regional management.