A SURVEY published by the Government shows that 80 per cent of ventures started with New Enterprise Allowance (NEA) support are still trading – with more than nine in 10 of these going for more than 12 months.

Around half of the 1,500 respondents report an expansion in their customer base (55 per cent) or an increase in turnover (47 per cent) since starting their business.

The majority of survey participants also say they have plans to grow their company in the coming years.

Employment Minister Priti Patel said: “The first year of trading is considered the most challenging.

“So I’m delighted that through our New Enterprise Allowance and added support services we are helping businesses stay on track and grow 12 months in.”

The NEA initiative is delivered through Jobcentre Plus and offers expert mentoring and financial support to jobseekers, lone parents and people on sickness benefits who have a good idea to set up their own business.

Set up in 2011, the latest statistics show almost 77,000 businesses have started with NEA funding and support.

Furthermore, one in five of all businesses created using the NEA have been set up by benefit claimants with a disability.

The NEA survey found that recipients started businesses in a wide range of sectors including retail, car repair, construction and professional services.

The NEA survey also found:

* of those that received support from a mentor, the vast majority (83 per cent) rated it as helpful in supporting them develop a business plan

* two thirds (66 per cent) of respondents did not access any additional support outside of the NEA scheme at the time of developing their business plan, suggesting that for most, the NEA scheme provided sufficient and appropriate support

* the payment of the NEA weekly allowance was commonly highlighted by respondents as being a critical factor in enabling them to start their business