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Enterprise Allowance Scheme

Volume 175: debated on Monday 2 July 1990

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To ask the Secretary of State for Employment how many businesses started under the enterprise alowance scheme in each year since 1982; how many businesses folded after the first year; and how many continued operating into the (a) second, (b) third, (c) fourth, (d) fifth, (e) sixth, (f) seventh, (g) eighth and (h) ninth year.

The numbers of businesses started under the enterprise allowance scheme are as follows:

Financial yearTotal number
February 1982 to July 1983 (pilot in five parts of the country)3,331
August 1983 to March 1984 (national implementation)27,629
April 1990 to May 199012,662
Information on the number of businesses which folded after the first year, and those which continued operating into further years is not collected from all former scheme participants. However, regular national follow-up surveys are undertaken and the latest show that of businesses completing a full year on the scheme 74 per cent. were still trading six months later, 9 per cent. were in paid employment or other self-employment, and 15 per cent. were unemployed. The remaining 2 per cent. were sick, retired, or provided no answer; and two years later 65 per cent. were still trading.