An award-winning business owner on Upper Street has hit out at the Government’s plan to introduce financial assistance to business start-ups.
Alastair Rae, co-founder of clothing store Albam based in Upper Street, said Prime Minister David Cameron’s proposal to give unemployed people £2000 as part of a New Enterprise Allowance wasn’t enough.
“I think when you look at any business that has actually succeeded it’s not because of the investment at the beginning,” said Mr Rae, who recently scooped the Best for Men’s Fashion prize in the recent Best Small Shops in Britain Awards.
“It’s more likely because of a great idea that you then find investment to make it work. I don’t think £2000 as an initial investment is going to make a difference.”
Mr Rae and his business partner James Shaw set up Albam in Nottingham in 2006 and started with just seven lines of clothing in their catalogue.
The partners now have a variety of styles in their three stores, including spaces in Spitalfields and Soho, and manufacture all their clothes in the UK.
Successful applicants for the expanded New Enterprise Allowance, announced by Cameron earlier this year, will receive a loan of up to £1000 towards start-up costs and payments equal to typical Jobseeker’s Allowance before this amount is halved for a further three months.
It has been claimed that the scheme, which will come into force in the autumn, will create up to 40,000 new businesses by 2013.
