A Hamilton businessman has won Government blessing for his plan to give beneficiaries a $5000 loan on top of existing WINZ funding to help them start small businesses.
Tom Bleier, chairman of Enterprise Hamilton, says he is delighted Social Services and Employment Minister Steve Maharey is putting $50,000 into theWaikato rollout of Bank Able NZ.
"Our eventual hope is to see hundreds of small businesses, each employing a handful of people, established in Hamilton and the Waikato. From there we want to see the scheme spread throughout New Zealand with the potential of creating many thousands of extra jobs - a real boost to the economy."
The project, a partnership between Enterprise Hamilton, WestpacTrust and Winz, is looking for sponsorship of $250,000 from Waikato businesses to complete the loan security funding pool.
This in turn will be used to guarantee bank overdrafts to selected beneficiary business start-up applicants. The beneficiaries will also attend an Enterprise Hamilton training course and receive "Be Your Own Boss" business start up grants of $5000 from WINZ.
Mr Bleier says one of the big problems with small business start up has been under capitalisation.
"We can give beneficiaries keen to start a business the right training and a mentor to hold their hand but without an overdraft to meet necessary business expenses in the start up phase the chances of success are reduced."
