§ Ms. RuddockTo ask the Secretary of State for Employment (1) how many people were on the enterprise allowance scheme in the London borough of Lewisham in 1986 and 1987, respectively; what proportion of these small businesses employed more than 25 people(a) in the first year of trading and (b) in the second year of trading; and what proportion failed in the first year of trading;
(2) if he will bring forward proposals to monitor the success rate of businesses started under the enterprise allowance scheme.
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§ Mr. CopeThe information is not available in the form requested. In the wider (inner London south) area, comprising Lewisham, Southwark, Greenwich, Bromley and Bexley, 1,506 people entered the enterprise allowance scheme in the 1986–87 financial year and 2,337 have joined so far in the 1987–88 financial year. Nationally, the rate of drop out during the allowance year has fluctuated within the range 11 to 16 per cent. since the scheme began.
The success rate of businesses started under the enterprise allowance scheme is already monitored though a programme of national surveys which was established when the scheme began. Latest evidence shows that 74 per cent. of those who complete a full year on the scheme are still trading six months after the allowance has ended, and 65 per cent. two years after the allowance has ceased.
The surveys also show that for every 100 businesses continuing six months after the allowance has ended, 71 people, in addition to the recipient of the allowance and any business partner, are employed at that time. Two years after the allowance has ceased, the number of additional people employed rises to 114 per 100 firms surviving.
Of those businesses which are employing others, at the 18-month point less than 1 per cent. are employing more than 20 people; the corresponding figure at the three-year point is around 3 per cent.