New Enterprise Allowance scheme - My story

I should point out that when I referred to training in an earlier post, that I wasn't suggesting that training should be available in the field that your business would be operating in; if you don't know how to the job that you will be basing your business on then you probably need to rethink your options. For my part I took the graduate route into graphic design and have been a professional graphic designer since 1991 and got into web design in the early days ('96 or thereabouts) so no worries there!

Shaneo85, it would be interesting to know just how much support you received, and in what form, during the initial planning period. There are clearly big differences between regional providers and obviously the standard of the mentors being used is quite variable.

@WPN - It's true what you say about paying back £9 per month when you're only getting £65 per week from NEA, but remember you're also supposed to be running a business and turning a profit. The £65 is for those quiet weeks when you might not have as much work.

Point taken. My view is the loan is only £1000 max, so most people with a business idea will stick as much other money they have into it as well. Some businesses can be run from home but in all seriousness, a proper business needs a small office or virtual office to be run from. Most people will do their best to negotiate terms on a small serviced office (say 3 months rent-free for a 12-24 month agreement) and ever increasing these days a virtual office or maybe even a PO Box (which are close to £200 a year these days!! Not in instalments)

Its best to note that running a business from home can result in the NVO dividing the property so part pays council tax (i.e. the residental area) and part pays business rates (i.e. the deemed commercial bit). Running a business from home can even invalidate your home/contents insurance. This could work out expensive. Also, say you work as a hairdresser or computer repair person attending peoples homes to provide services, you really should have liability insurance (generally speaking new businesses are deemed high risk to insurance premiums relatively high) against being sued for personal harm or damages to property. Without that, something as simple as a freak incident which you might not even really be at fault could force you bankrupt.

Whether letterheads are professionally printed or with a computer printer... you are looking at anything realistically of £20 upwards... print as you go... ink is going to be a large chunk of your allowance.

I would be amazed if anyone managed to work anything proper from it. The only groups I can see doing fine from this is:
a) Those with savings of their own to invest (why could they not sign off and do a business anyway?)
b) Under 25s who will be able to take advantage of the higher allowance rate for first 13 weeks, before signing back on (if it works like that)

Went back to the Job Centre today to see my regular advisor who's a bit more clued up than the last one I saw.
He was apologetic about the delay in getting me on the scheme and although the referrals are still limited to 2 a month I am on the next one in October. He has already given me a Business Plan to fill out ready to present to my mentor who I have an appointment with.
It is certainly not the best help in getting a business off the ground and I can see where the negative comments come from.
Personally, I was going to start a business on my own anyway so I'm only really using this scheme to get the £65 a week which I wouldn't have got if I just signed off.
I have the majority of all my tools so will apply for the grant to use as a website and promotion. Not too confident of being allowed it though

@boh5

I think the scheme is only suitable for businesses with very low start-up costs. My business idea can be run from a bedroom, and has very low capital costs. In my case, the scheme is ideal. If I combine NEA, WTC and HB together I'm a little better off than I would be on JSA. Plus if the business turns a profit, I get to keep that. So the schemes a great idea for certain types of business. It's also terrific for those people who were going to set up a business anyway.

Having said all this, I'm having difficulty with the mechanics of how to access NEA. My local jobcentre seem to have no idea themselves who provides the mentoring/loans/business plan review. They don't know who runs the scheme basically. This is bizarre:eek:. Anyone else experienced this? Anyone know what I could do about this? The DWP/DirectGov sites give very little information.