Cash to encourage ‘family firms’

Nov 12 2008 by Sue Scott, Evening Gazette

A £1M INVESTMENT is to support new parents and carers in starting their own businesses for more flexibility in family life.

The funding, from regional development agency One North East and the European Regional Development Fund 2007-13, will back work to help parents and carers explore the benefits of running their own enterprise when it comes to managing childcare, getting back into employment or supplementing their income.

It will see the launch of workshops and one-to-one mentoring through many Sure Start and community centres, baby and toddler groups, nurseries, and health and leisure services.

These will support parents and carers in looking at how enterprise could work for their needs - helping them to develop their ideas and reach sources of support, as well as linking them with other people who are thinking about launching a business around caring responsibilities.

The investment underpins the aims of the Regional Economic Strategy which highlights the need to create up to 22,000 sustainable, new businesses by 2016 and to get more people – particularly in deprived parts of the region - playing an active role in the economy by supporting an enterprise surge.

One NorthEast’s head of business, enterprise and skills, Tim Pain, said: “Research shows people with young children in deprived areas are among those least likely to pursue a career in enterprise, and we know that family commitments can be a barrier for would-be entrepreneurs.

“However, being your own boss can also offer a degree of flexibility which many parents are looking for. The idea of ‘starting a business’ can seem overwhelming, with lots of concerns and questions – but in fact, there are many parents with young children in this region who are proving that enterprise can really work for family life.

“At a time of rising food and energy costs when many families are looking for ways to supplement their incomes and, in some cases, are concerned about job security, they may not have even considered the possibility of working for themselves. This project will enable people to see whether enterprise could suit their lives, and to convert ideas into trading businesses.”

The project is to benefit from £500,000 of European Union investment from the ERDF Competitiveness Programme 2007-13, managed by One North East.

The ERDF programme is bringing more than £250m into the North-east to support innovation, enterprise and business support across the region.

Research shows people who receive enterprise support are 50% more likely to go on to launch a business and, in addition, suggests that they may do so significantly more quickly if they work with friends or associates.

The project is expected to start towards the end of autumn, and will last until March 2010.