Centre for Enterprise Helps 1,500 Disadvantaged Entrepreneurs

Disadvantaged entrepreneurs are the main winners in a highly successful enterprise scheme pioneered in Manchester and run regionally by the Centre for Enterprise at MMU Business School.

An evaluation of NES, commissioned by the Learning and Skills Council and published this week, finds that three-quarters of people completing the part-time course go on to set up their own business within three months. NES businesses have an extremely high survival rate with 94% still in business after a year, 86% going strong after three years and three-quarters still trading after five.

Financial support

The programmes are funded by the Learning and Skills Council with the North West regional contractor being the Centre for Enterprise at MMU Business School. NES is delivered locally by colleges in areas of unemployment like Liverpool, Rochdale and Oldham. The part-time courses offer a package of training, support and monitoring including financial support to encourage new start-ups.

Dominic Martinez, who project manages NES North West out of MMU Business School, which piloted the first scheme, said: "People from disadvantaged areas and backgrounds often have the ideas and ambition to succeed in business, but many find it hard to get support and finance relevant to their needs. NES offers real practical support in planning a successful business and is flexible enough to allow you to learn and study around your business commitments."

The evaluation research also found that the programme has tremendous success in reaching the most disadvantaged groups with 59% of recruits classed as unemployed or inactive at the start of the course.

National recognition

Of the 1,500 people to take the course in the North West, several have really made the grade and achieved national recognition including Lorraine Corrance from Barrow-in-Furness who took a national prize and Rochdale NES scholars Paul Merker and Jerry Mantalvanos who triumphed in the BBC’s Dragons’ Den.

Lorraine’s double prizes

A committed single parent with two young girls, Lorraine Corrance’s job with a local care provider began to prove difficult, so she took the decision to leave and go for the hardest, but potentially most rewarding alternative - self-employment. She graduated from the NES course run by Furness Enterprise last year, and now runs One To One Personal Care, offering specialised home care to disabled people in the Furness area.

Lorraine test traded for 6 months and ploughed her profits back into the business, building a substantial client base, buying a company vehicle and taking on an employee. Last April, her achievements won her the title of NES North West Entrepreneur of the Year, and at the end of 2007 she was named Entrepreneur of the Year at the National NES Conference, beating off NES scholars from around the UK to claim the judges’ vote due to her commitment and natural business acumen

“I was gobsmacked – but really thrilled!” said Lorraine of her double success. “It means I’ve no chance of getting into a rut. As well the attention from the award, I want to get on with training more staff and taking on more clients. I still want to maintain the high standards I’ve set myself.”

Dragons’ Den success for Rochdale duo

Rochdale NES scholars Paul Merker and Jerry Mantalvanos also stepped onto the national stage when they triumphed in the BBC’s Dragons’ Den just before Christmas. The duo originally re-mortgaged their homes to raise the initial start-up costs for their JPM ECO Logistics Limited, an eco-friendly haulage company which runs its vehicles on 100 per cent bio-diesel.

“We only went on when my wife sent in an application form,” laughs Jerry. “Obviously I am really glad she did, although I’ve never been so nervous in my life!” The final deal done in the Den was £100,000 for 40% of the business with Dragons Theo Paphitis and Deborah Meaden investing.

The programme, aired in December, produced an immediate increased interest in Paul and Jerry’s company. The website alone attracted 39,000 hits the following day. “We’ve been overwhelmed,” says Paul. “The feedback has been so positive, and we’ve had people offering to help us in other ways.”

“We learned everything from NES,” says Paul “Business planning, profit and loss, invoicing - the lot. The course was invaluable, and we couldn’t have made it this far without the NES team.”

NES works for Fiona

NES also works for the hundreds of entrepreneurs whose key achievement is not national recognition but the realisation of a personal dream to work for themselves – such as Salford entrepreneur Fiona O’Gorman.

Fiona worked in retail before taking the plunge to set up on her own as a photographer. "I’ve done everything from weddings and pets to double glazing and caravans!" she says. Having used the NES support funds for new camera equipment, a laptop and stationery, Fiona is supplementing her income by teaching part-time at the Abraham Moss Centre.

"NES gave me the knowledge to develop my business, and the confidence to promote myself and my work. I knew it was going to be hard work to make a living from my photography,” she says. “But with the help of NES, I have written a fantastic business plan, which I can refer to and which I’m very proud of."

Socially inclusive

NES scholar profiles also include those with a disability (10%) and lone parents (16%), while 30% describe themselves as non-white. At a time when policymakers are encouraging the support of women in enterprise, the survey also confirms that 46% of its scholars are female.

George Derbyshire, CEO at the National Federation of Enterprise Agencies, the lead management partner for NES, said: "We have always believed that the NES programme hits the spot in terms of reaching disadvantaged areas of the population, and that it delivers a highly-effective business start-up programme.”

Professor Ossie Jones, Director of the Centre for Enterprise concludes: “NES has an excellent track record of helping people make their dreams of running a business a reality. The programme is a great opportunity for local people to put their ideas into practice, backed by expert support and advice, and working in a supportive group.

“We’re looking for people with a great business idea who have put some thought into how to set it up, but now need the right advice and support, as well as funds to get it off the ground.”