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Help with funding for Unemployed wanting to start New Business
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# 1
likeablelassie
Old 25-02-2009, 11:35 PM
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Question Help with funding for Unemployed wanting to start New Business

Hi,

I was hoping someone might know of any organisations that help to fund new business ventures for the unemployed.

Both my partner and I were both made redundant just before Christmas, we have had no joy finding work (even though we have sound qualifications and experience) and have decided to set up a small local cleaning business.

Being on JSA, there is no money left after buying basic necessties for things like equipment, vehicle, insurance etc that we need to get started. We've worked out we'd only need a small grant or loan of between 1000-2000 as we'd be working from home.

We had an appointment with a 'Business Advisor' this morning, who is part of a local government funded initiative to help people (including unemployed/people on benefits) start a small business.

It appears that they provide most of the support that we'd need, free of charge, but we have already come across the problem of funding.


I enquired about grants which they advertised as part of the scheme, but after looking into them, we discovered that some only help people who have been unemployed and claiming JSA for 6 months or more (we havent) and others have age limits, usually between 18-30 (Im 31, my partner is 25!). There is exception to the rule, as I asked.

We have had a bit of a blow today as we were all set to start trading soon, but lack of funds have prevented this at the moment.

I was hoping that someone might be able to point me in the right direction. Ive looked on Business Link website, my local Council website, Job Centre website and MSE website, but the ones Ive come across have either an age restriction or applicants have to have been unemployed for 6 months or more. I really dont want to wait until Ive been claiming for 6 months before starting this venture, I want to get back into work asap, but lack of funding is the only thing stopping us.


Id appreciate any help. :confused: Thanks
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# 2
BlameTheGame
Old 26-02-2009, 12:15 AM
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I wasnt aware that the unemployed were given grants to start up a business. Sorry i don't have anything useful to add but good luck with the new business.
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# 3
BlameTheGame
Old 26-02-2009, 12:32 AM
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Try this:

http://www.princes-trust.org.uk/need...p_support.aspx
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# 4
likeablelassie
Old 26-02-2009, 5:54 PM
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Thanks very much for this link.

I had come across it last week and unfortunately dont qualify on the count of either the area where I live (Yorkshire), age (Im 31) or some where you have to have been claiming benefits for 6 months or longer (I havent).

Let me know if you find anywhere else.

Thanks for your help.
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# 5
Horace
Old 26-02-2009, 6:13 PM
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You need to be long term unemployed or disabled before you can get onto a New Deal for Self Employment Scheme and then you do some courses at your local chamber of commerce and have fortnightly meetings when you start test trading. You get an additional 15.38 a week to use for petrol but I use mine to pay my business insurances.

No-one is lending to small startups at present so the best thing to do is start from a shoestring. I have managed to do it by negotiating a deal for a website, getting free and cheap stuff from Vistaprint, advertising on facebook, leaving my business cards in shops, spas etc. I won't be going back on the dole either at the end of test trading as I have decided to carry on with my business and claim working tax credit.

HTH
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# 6
Nicky27
Old 26-02-2009, 6:23 PM
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The availability of funding for any startup business, depends more on your location than your employment status. There are numerous grants available across the country, but these often cover the more consultative aspects of starting your business e.g. business planning and mentoring, marketing, website design etc. Funding for the physical items such as equipment, vans and printed literature is less easy to come by, and tends to be available in specific areas where the government have allocated additional funding for economic regeneration, or in rural areas. I would recommend you give your local Business Link a call, as they act as a single point of entry for all business support in England. They will be able to identify exactly what funding is available in your area, and what you are eligible to apply for.

It is something to bear in mind that many grants only cover a percentage of the cost of a project, up to a maximum amount. For example, you might be eligible for grant funding of up to 80% of the cost of a website. If the website costs 1000, the maximum you could receive would be 800, and you would need to contribute the remaining 200.

If you don't really have any money of your own to invest, there may also be startup loan schemes available in your area, offered through business support organisations as opposed to the banks, which we all know aren't keen to lend anything at the moment.

I'd also recommend you have a comprehensive business plan in place- you will probably get help with this from your business advisor anyway, but if you need to secure any sort of finance, be it grants or loans, you will need to demonstrate the business is financially viable, with cashflow forecasts and profit and loss projections.

Finally, just be aware that you cannot apply for funding retrospectively, so you should not purchase equipment before funding applications have been approved. A key factor in the decision to approve funding is that you would not be able to purchase the items without the grant, and purchasing in advance will be taken as an indication that the funding is not necessary.

I hope this helps a little. There is a lot of information out there, not all of it useful, so I'd suggest again that you contact your business link for information specific to your location. Best of luck with your business!
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# 7
ShaunJUK
Old 23-05-2009, 5:11 PM
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It all depends on your area, Business Link is a good place to start, in my area there is a place called E-Factor, they provide training etc and help you build up a business plan, they then help you apply for funding.

http://www.e-factor.co.uk/
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# 8
freelancemermaid
Old 25-08-2010, 11:47 AM
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The rules have changed: people on JSA can now potentially move onto their Self-Employed Scheme after just 13 weeks of being unemployed.

There's very scanty information on the direct.gov website, speak to an advisor about it ASAP is my advice!

For grants on all sorts of things, try GrantsNet and the Family Welfare Advisory Group (weird name, but have a database of grant funding)

Best of luck!
Boyfriend & I have saved 12K in two years, thanks to careful budgeting and keeping a record of what we spend. I've never paid myself this amount of money before - it feels great!
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# 9
red devil
Old 25-08-2010, 1:39 PM
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Quote:
Originally Posted by likeablelassie View Post
Hi,

I was hoping someone might know of any organisations that help to fund new business ventures for the unemployed.

Both my partner and I were both made redundant just before Christmas, we have had no joy finding work (even though we have sound qualifications and experience) and have decided to set up a small local cleaning business.

Being on JSA, there is no money left after buying basic necessties for things like equipment, vehicle, insurance etc that we need to get started. We've worked out we'd only need a small grant or loan of between 1000-2000 as we'd be working from home.

We had an appointment with a 'Business Advisor' this morning, who is part of a local government funded initiative to help people (including unemployed/people on benefits) start a small business.

It appears that they provide most of the support that we'd need, free of charge, but we have already come across the problem of funding.

I enquired about grants which they advertised as part of the scheme, but after looking into them, we discovered that some only help people who have been unemployed and claiming JSA for 6 months or more (we havent) and others have age limits, usually between 18-30 (Im 31, my partner is 25!). There is exception to the rule, as I asked.

We have had a bit of a blow today as we were all set to start trading soon, but lack of funds have prevented this at the moment.

I was hoping that someone might be able to point me in the right direction. Ive looked on Business Link website, my local Council website, Job Centre website and MSE website, but the ones Ive come across have either an age restriction or applicants have to have been unemployed for 6 months or more. I really dont want to wait until Ive been claiming for 6 months before starting this venture, I want to get back into work asap, but lack of funding is the only thing stopping us.

Id appreciate any help. :confused: Thanks
its very difficult . I dont think there is anything. There might be small grants of 500 to people who have been unemployed a long time so i was told.
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# 10
carkeyz
Old 25-08-2010, 1:46 PM
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I started my own cleaning business after deciding to give up my day job when i finished maternity leave and I had no money or equipment. To start off I would reccommend get a few clients, most people are happy to pay cheaper prices if they provide the materials, then you can build up a cash tin to buy the bigger bits and then advertise at a higher rate for new clients. You also get a bit of experience as well.
Cleaning on a professional basis isnt the same as cleaning your own home at all so the experience, especially with dealing with mad requests will stand you in good sted for the future if you are really commited to this.
If you would like any advice pm me.
Carla
Debt at LBM: 9660.05
I run my own business and LOVE being self employed!
I am mummy To my Millie


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# 11
kaywantsapug
Old 25-08-2010, 3:18 PM
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I'm just in the process of setting up my own business too. I claim Incapacity Benefit.

Inbiz which is part of the jobcentre do a 13 week trial, you open a business bank account and trade for 13 weeks, still receiving your benefits. However they can access your business account to see that all money made is either being saved or spent on stock and equipment, not for wages or drawings.

Sencia are giving me 200 start up costs until my local chamber of commerce give me approx 500.

My housing association are also giving me 100 start up help from something called the ice fund.

It all depends on the area you live in I suppose. Good Luck!
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# 12
red devil
Old 27-06-2011, 2:23 PM
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i am in worcestershire and would like help and advice on a business on the internet if anyone can help?
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# 13
Horace
Old 27-06-2011, 8:47 PM
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Red Devil this thread is yonks old.

I don't think there are funds in Worcestershire or anywhere else - I tried when I set up 2 years ago and got zip.

If you are 18-25 you maybe can get help from the Princes Trust but if you are older than that then forget it, do what the rest of us have had to do and get some sub contract work to keep the business ticking over.

You could check with Business Link but doubt very much that they will have anything.

You could always have a chat with a business advisor at the Hereford & Worcester Chamber of Commerce - they give free advice nor do they steal your idea which is what you were worried about on another thread.
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# 14
SarEl
Old 27-06-2011, 9:45 PM
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It may be a silly suggestion - but have you asked your banks business advisor? It isn't a deal of money, and if you have been solvent and responsible in the past they may be willing to consider an application as it is a small risk to them? After all, the worst they can do is say no.
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# 15
jhp
Old 28-06-2011, 1:52 AM
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Quote:
Originally Posted by SarEl View Post
It may be a silly suggestion - but have you asked your banks business advisor? It isn't a deal of money, and if you have been solvent and responsible in the past they may be willing to consider an application as it is a small risk to them? After all, the worst they can do is say no.
!! Original Post Feb 2009.

Last edited by jhp; 28-06-2011 at 1:58 AM.
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# 16
SarEl
Old 28-06-2011, 8:49 AM
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Quote:
Originally Posted by jhp View Post
!! Original Post Feb 2009.
OOPS I didn't notice the date!
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# 17
PasturesNew
Old 28-06-2011, 9:25 AM
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A quick/random Google and I found this:
http://www.ukbusinessgrants.org/qa/q...rants-Database
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# 18
red devil
Old 28-06-2011, 1:12 PM
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Thanks. I dont think it matters how old the thread is. I wanted to bring it back again instead of starting a new one.
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# 19
dazzler67
Old 29-06-2011, 1:39 PM
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New Enterprise Allowance (NEA)

On 5 October the Secretary of State for Work and Pensions announced that the Government will give extra help to unemployed people who want to start their own business, through the New Enterprise Allowance (NEA).
NEA will be available to Jobseekers Allowance (JSA) customers who have been claiming for 26-weeks or more.
Participants will get access to a volunteer business mentor who will provide guidance and support as they develop their business plan and through the early months of trading. Once a customer can demonstrate they have a viable business proposition with the potential for growth in the future, they will be able to access financial support. This will consist of:
  • a weekly allowance worth 1,274 over 26 weeks, paid at 65 a week for the first 13 weeks and 33 a week for a further 13 weeks, and
  • if they need start-up capital, they may also be able to access a loan up to 1,000 to help with their start-up costs.
The total package of support could be worth up to 2,274 to each participant who starts their own business.
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# 20
saintjammyswine
Old 29-06-2011, 2:42 PM
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Depending on where you are it would be worth looking at local not for profit organisations. In Southampton there is one called West Itchen Community Trust which owns various properties and the rental income goes towards providing coaching etc for people within particular postcode areas of the city in starting businesses etc.

Speak to your local Business Link.
I work within Further Education however opinion & 'advice' I give is purely personal.
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