The Enterprise Allowance Scheme was an initiative set up by Margaret Thatcher's

Conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization ...

UK government which gave a guaranteed income of £40 per week to unemployed people who set up their own business. It was first announced on 13 November 1981, and piloted between January 1982 and July 1983, funding 3,331 individuals. Introduced nationwide in 1983 against a background of

mass unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the referenc ...

in Britain, it went on to fund 325,000 people, including

Creation Records Creation Records Ltd. was a British independent record label founded in 1983 by Alan McGee, Dick Green, and Joe Foster. Its name came from the 1960s band The Creation, whom McGee greatly admired. The label ceased operations in 1999, although ...

head

Alan McGee Alan John McGee (born 29 September 1960) is a Scottish businessman and music industry executive. He has been a record label owner, musician, manager, and music blogger for ''The Guardian''. He co-founded the independent Creation Records label, r ...

;

Superdry Superdry plc (stylised as SUPERDRY®︎冒険魂) is a UK branded clothing company, and owner of the Superdry label. Superdry products combine vintage American styling with Japanese-inspired graphics. It is listed on the London Stock Exchang ...

founder Julian Dunkerton; artist Tracey Emin and the founders of Viz magazine. Anyone wishing to claim money under the scheme was required to fund the first £1000 out of their own funds, and also to produce a basic

business plan A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on t ...

. Proponents of the scheme believed that it would have a great impact on unemployment, and support entrepreneurship. Critics pointed to figures which suggested that one in six of the start-up businesses failed in the first year, and said that it had no significant impact on unemployment figures as most of the start-ups were sole-trading operations. A similar scheme, the ''Back to Work Enterprise Allowance'' was set up in Ireland. On 6 October 2010, a plan was announced by

Work and Pensions Secretary The secretary of state for work and pensions, also referred to as the work and pensions secretary, is a secretary of state in the Government of the United Kingdom, with overall responsibility for the business of the Department for Work and ...

Iain Duncan Smith Sir George Iain Duncan Smith (born George Ian Duncan Smith; 9 April 1954), often referred to by his initials IDS, is a British politician who served as Leader of the Conservative Party and Leader of the Opposition from 2001 to 2003. He was S ...

to revive the scheme, giving mentoring and funding of up to £2000 to those unemployed for over six months and wishing to start up their own business. The funding would include a weekly payment linked to the value of their benefit, and £1000 for the purchase of equipment.

References

{{reflist United Kingdom labour law Government aid programs Programmes of the Government of the United Kingdom