Start Up or Sign On?
There has been a lot of “noise” today (03/01/13) in the UK over the rolling out of the “Startup loan” scheme. Sounds good. Young Entrepreneurs can apply online for a loan of approx £2,500 – more if you have added investors- to start up their business, receive business advise and the interest is 6% . Sounds like a great scheme- ideal for getting people off Job Seekers Allowance Oh. Hang on; the Startup loan scheme is not available to those on JSA- no you have to already be of independent means or in work.
Fear not though. There is the New Enterprise Allowance. Under this scheme you can claim the allowance- £65 a week for 13 weeks then £33 for a further 13 weeks- and can get a loan of £1,000 with interest capped at 10%. If you do not have independent means but have a good idea for a business it is unlikely to get off the ground. How many new businesses can generate a living income within 6 months?
Yet again we seem to have a Strivers v Scroungers agenda here. What is particularly annoying today is that none of the press picked up on this discrepancy- all the debate was about whether £2,500 was enough to start up a business. (and yes, unlike the NEA, several people can get a loan of £2,500 each for one business…)
Another example of an unlevel playing field, smoke and mirrors and lack of joined up thinking. No surprise there then.
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