Youth business scheme outlined

Press, 2 July 1985, Page 9

Youth business scheme outlined

Ten to 15 young people could get a start in their own business under a scheme planned by the Canterbury Development Corporation. The Canterbury Enterprise Scheme would provide instruction and support to do initial research for graduates of the University of Canterbury, Lincoln College and Christchurch Polytechnic, said a corporation director, Mr Gerald Ward, to the Christchurch City Council’s employment promotion committee yesterday. He said the scheme would cater for 10 to 15 young people a year from applications received. Those selected would be given instruction in business administration and finances and time to research the market for their proposed business over a four-month period. The people on the scheme would then face the market to begin their business. They would not receive any financial support to get started from the scheme, Mr Ward said. They would have to go to the usual finance sources.

The scheme was based on

one run at Stirling University in Scotland. After 2¥z years the scheme was run nationally in Scotland. The corporation would promote and manage the scheme with the support of the University and Polytechnic. The Polytechnic would provide facilities and staff for the block course instruction, and an enterprise counsellor to advise students. Mr Ward said the corporation hoped to gain Government backing for those on the scheme to the level of the unemployment benefit. The scheme would seek sponsorship in the private sector and could later be opened up to people from that sector.

Each September a panel would select candidates for the intensive block course to be run in the JanuaryApril period of the next year. The first three weeks of tuition would be at the University with help from small business experts. The next six weeks would be for those on the course to get in touch with customers, distributors, bankers, and ad-

visers and to research the market.

In the tenth week they would have all the information to launch their business. Final evaluation of the business would complete the course.

Mr Ward said the cost of the scheme would be about $140,000 annually. It would create 15 businesses, employing on average two people. The cost a job was $4600, . with the potential to double the number of businesses and halve the job cost.

The Government could assist financially with grants and suspensory loans, Mr Ward said. Peat Marwick Mitchell was one local sponsor fully behind the scheme.

The corporation believed the scheme would have no losers. Participation rather than winning provided the benefits. Mr Ward said he was introducing the scheme to the council. His aim was to provide some support for promising young people to start their own businesses.

Councillors supported the scheme and called for more detail.