HC Deb 13 January 2004 vol 416 cc689-90W
Dr. Kumar

To ask the Secretary of State for Trade and Industry what steps are being taken to help people in the North East who are 50 and over who are not working to set up their own businesses. [144769]

Jacqui Smith

Self-employment provision is delivered on behalf of the Government primarily through the Small Business Service by Business Link Operators, and their network of providers.

This provision is aimed at all who want to start-up, without any form of prejudice, and regardless of their employment status. They work hard to create effective and efficient referral mechanisms (commonly known as brokerage) to ensure that each customer gets appropriate support for their needs–regardless of ethnic origin, age, gender, sexual orientation or residential location.

Business Links in the NE work with all potential partners and stakeholders, including Jobcentre Plus, who deliver the self-employment option of New Deal 50 + through their network of providers.

The standard model in New Deal provides: An initial awareness session for potential participants during the New Deal "Gateway" period; A period of supported business planning with a business expert, and A period of "test trading", whereby participants start their business while continuing to receive benefits to help them over any initial transitional hurdles. This period can last up to a maximum of 26 weeks.

New Deal is just one of many support programmes for budding entrepreneurs. A range of initiatives exist within programmes, focussed upon "deprived areas" (Employment Zones, Action Teams and New Deal for Communities) and groups, and advice and support is also provided by the Small Business Service (DTI), with funding from the European Social Fund and the Prince's Trust Business Programme (which is partly funded by DWP) underpinning much of the support.

NE Business Links all seek to provide on-going support for all who come through this process.

The Regional Development Agency, One North East are currently providing funding to the national organisation for promoting enterprise amongst the over 50s, PRIME to the tune of £185,550 to provide assistance to promote/assist self employment/business start-up to people over 50 in the North East.

This has a special focus on those who are economically inactive, unemployed, and/or a financially and socially excluded background.

This is delivered thought local partner organisations which contract with PRIME to supply marketing and outreach programmes, as well as business start-up services from pre-start up advice through to post startup support and mentoring.

The project also makes available PRIME loans to provide "last resort" start-up finance to non-working people over the age of 50 for promising business ventures. ONE NE's funding also provides the resources for the PRIME regional development officer, who has specific responsibility to co-ordinate delivery of the PRIME initiative in the North East region. It also provides financial incentives to PRIME loan associates and their approved contractees to target the economically inactive and unemployed over 50s. Business Link Tees Valley, which covers my hon. Friend's constituency, is one such loan associate.

NE Business Links actively work with their networks of enterprise training and development providers to ensure that information, advice and assistance is provided to people aged above 50, which match their individual circumstances. The PRIME scheme is introduced to people where appropriate.