Member Article

Gateshead Council boosting startups in new nationwide scheme

Gateshead Council has become the first of fifteen specialist organisations across the UK to help get a local business off the ground, under a scheme providing advice and support to unemployed people.

Marking the second of two ‘firsts’ for the council, Gateshead Council became the only public sector organisation in the UK to win one of the Department of Work and Pensions £1.7m contracts last year, beating off stiff competition from private sector providers.

The work is part of the Government’s New Enterprise Allowance scheme which helps people who are unemployed get advice and support to develop a business idea, following a referral from their Job Centre Advisor.

Gateshead has been providing a similar service since 2011, when it became the lead authority for the NEA in Tyne and Wear and Northumberland. From 2011 until 2014, 2,000 people from the area were helped to set up their own business. Then the Council won a national bid to provide the scheme across the whole of the North East region.

The first business start up of the new scheme, which began in January, is a nursery based in Bishop Auckland, County Durham. With the ever rising demand for quality childcare, the business already has 11 children on the register.

Gateshead Council subcontracts out to a number of local enterprise agencies who deliver the NEA scheme and it was South Durham Enterprise Agency who provided the service to this new start-up.

The business coaches at each agency provide support and practical help with a wide range of subjects including that issue most people starting a business fear - taxes. All participants on the scheme get help writing a business plan over an eight week period and can gain access to additional volunteer mentor support from the local business community.

Once the business plan is approved, the business starts, supported by 26 weekly payments, which have proved helpful to many while their businesses are in the early stages of development. Participants can also apply for an enterprise loan via the Government’s ‘start up loans’ scheme, so a full programme of both financial and practical support is provided.

Business coaches supporting participants continue to offer help even after the businesses have started, for help and encouragement.

Andrew Marshall, Service Director for Economic and Housing Growth at Gateshead Council said: “We are absolutely delighted to be the first organisation nationwide to have the first business start under this new programme.

“This contract win was hugely significant for us. It demonstrates the ability and skills of our experts and shows the quality of the offer that we can provide to local unemployed people.

“Having helped 2,000 people during the last contract, we’re looking forward to working with our partners to help thousands more local people to set up their own business in the North East.

“We are particularly grateful to our partners in Job Centre Plus, who are the key to helping with the success of this programme.

“They are the first point of call for anyone on benefits who is interested in setting up their own business. They signpost those people to us and the whole process begins – hopefully towards business success.”

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