More than 105,000 businesses have now been set up with the help of the New Enterprise Allowance (NEA), a fund for budding entrepreneurs with an idea for a new company.
Under the scheme, successful applicants get access to a business mentor, financial support for up to 6 months and may be able to apply for a loan of up to £25,000 to help with start-up costs.
The latest NEA figures show that the North West had the highest number of start-ups (16,090), followed by London (12,870) and Yorkshire and Humberside (11,590).
The figures also show that of the individuals launching a business:
- over two thirds were aged between 25 and 49
- 24% were over the age of 50
- 7% were aged between 18 and 24
- 40% were women
- 22% have a self-declared disability
- 13% were from a black and minority ethnic background.
Creating and developing a business can be an exciting but daunting task. It’s vital to carry out extensive research to make sure you progress in a sustainable way. You need to know your potential market but you also need to consider the legal structure of your business.
For example, you may start out as a sole trader but as you develop there might be advantages in creating a limited company or perhaps entering into a partnership.
The correct approach will depend on the type of business you operate. You may also need to consider employment contracts if you need to take on staff, and leasing arrangements if you need premises.
Good legal advice at the outset can prevent mistakes that could prove costly in the future.
Please contact us if you would like more information about the issues raised in this article or any aspect of starting a new business.