§ Mr. David ShawTo ask the Secretary of State for Employment if she will make a statement on the achievements of her Department and her policies in helping small businesses over the last 12 months relative to the previous 12 months; and if she will publish the performance indicators by which her Department monitors those achievements and the statistical results of such monitoring.
§ Mr. McLoughlinThe Government continue to place a high priority on helping small businesses, through improvements to the business climate, through deregulation and through specific programmes of support and assistance.
Following this year's general election, policy responsibility for some services for new and small businesses has been transferred from this Department to the Department of Trade and Industry. My right hon. Friend the President of the Board of Trade detailed the successes of this Department over the last 12 months in helping small businesses in answer to a similar question from my hon. Friend.
Measures that continue to be operated by the Department to assist small businesses include business 792W start-up—the enterprise allowance scheme—which provides an allowance in the early months of trading and on-going support to unemployed people who start their own businesses. The performance of this programme is measured in terms of numbers taking up support and the survival rate of these businesses. From April 1991, training and enterprise councils have been able to adapt the scheme to suit local economic needs. TECs are now placing greater emphasis on increasing the quality of the businesses they support in an effort to improve survival. More than 60,000 people were awarded an allowance in the 1990–91 financial year, and just under 50,000 in 1991–92. Survey evidence has consistently shown that of those people completing the full term of the allowance approximately 76 per cent. are still trading six months later, that is, 18 months after start-up.
The Department makes significant funds available to TECs to enable them to support the development of small businesses. TECs provide a varied range of help including consultancy support, advice and guidance and training audits. More than 100,000 businesses were assisted in the 1991–92 financial year. TECs increasingly are linking this support to achievement of the Investors in People national standard. Investors in People sets a standard for the training and development of people—a vital requirement for any business large or small. Of the 67 employers that have met the standard so far, 32 are employers with fewer than 200 employees. There are more than 1,100 employers committed to achieving the standard, including many small businesses.
The Department monitors all its programmes and also commissions external evaluations which are published. In May 1992 we published "Small Firms in Britain" which was sent to all Members of Parliament. This report surveys developments in the sector, including key statistical indicators and outlines overall Government policy towards small firms.