HC Deb 15 March 2000 vol 346 cc229-30W
Mr. Gareth R. Thomas

To ask the Secretary of State for Northern Ireland what action he is taking to offer financial assistance and support to social enterprises in Northern Ireland. [113681]

Mr. Ingram

[holding answer 9 March 2000]: Social enterprises in Northern Ireland fall under the remit of DETI, which through the Local Enterprise Development Unit (LEDU), the small business agency for Northern Ireland, assists community businesses and co-operatives directly via the Community Business Start Up Scheme and indirectly via the Northern Ireland Co-operative Development Agency (NICDA).

The Community Business Start Up Programme, which has been in operation for nine years now, is an important means of addressing inequality and promoting economic development in disadvantaged areas.

Since its relaunch in 1996, the Programme has committed £1.5 million to support the establishment of 104 community businesses throughout Northern Ireland, creating employment opportunities for 182 people. Each business remains on the programme for two years from start-up with survival rates of 65–70 per cent. All businesses assisted under the programme are located in areas of social need or have direct benefit to the regeneration of such areas by the involvement of local communities in businesses, earning profits for local reapplication.

NICDA, also known as the Social Economy Agency, has provided development support and training to groups and local communities all over Northern Ireland seeking to establish social economy initiatives since 1985. NICDA has received funding from LEDU since 1994 for the delivery of a number of community-based projects in fulfilment of LEDU's objectives, including funding for the delivery of the Community Business Start Up Programme.

More recently, LEDU has assisted NICDA by purchasing a number of the programmes from their Social Economy Enterprise Programme, in particular those which add value to its Community Business Start Up Programme by stimulating increased Enterprise Awareness. Some of these programmes seek to develop marketing and other commercial skills within the Social Economy Sector.