A self-employment success story for ex-offenders

• All six businesses are now trading
• In the first three months they earned  twice their start-up grants
• All the ex-offenders are off benefits
• None have reoffended.

Finding and supporting the right beneficiaries is vital.  Targeting relatively modest funds through tutors who have ongoing relationships with those planning self-employment can be very effective. 

Background

The grant money of £10,000 which funded the start-up of these six businesses came from Government Office for London.  This was reported in some detail in the last TLJ occasional paper [ http://www.thelearningjourney.co.uk/enterpriseday13march08 ]

Getting feedback about resettlement outcomes of self-employment is a key objective of this project.  The project will continue to be reported as a case study of lessons learned and what works.  This will assist evidence-based decision making that will benefit the fight against re-offending.

The six beneficiaries of the project so far will be monitored on a quarterly basis for two years.  We will report on the development of their business activity.  We are interested in an ongoing analysis of successes, challenges, responses and growth performance.

Value generated

All six of the businesses were started successfully and continue to trade.  All of them have generated sales revenue.  The total sales revenue for the six in the first three months was £22,500.  That is in excess of two times the grant money required to get them started.

Sales revenues ranged from £1,000 to £7,800.  Three of them sold £4,500 or above.

What has gone well?

There were a number of recurrent themes in the responses.  These include both hard measures such as successful contact with clients and soft measures such as growing personal confidence.  The following were mentioned by several respondents:

• The benefits of getting the equipment necessary to get started
• Positive response from customers and personal networks
• Gaining confidence with growing experience
• Successful pursuit of qualifications and training goals
• Optimistic expectations for future business.

Here is a selection of responses in their own words:

“I have established a studio and office, established my computer equipment and software, familiarised myself with new software …Support … has enabled me to proceed with real confidence. I have also received wonderful support from family.”

“The tools that have been purchased for me have enabled me to provide an efficient and cost effective service …I have gained a lot more experience of working on my own through being able to use these tools… I have become more confident at problem solving.”

“I have completed the tiling course so am able to offer a wider range of skills to my clients…The tools that have been purchased for me have enabled me to undertake my work at a professional standard…I have been taking my driving lessons and am growing in confidence.”

“I have been successful in steadily increasing the amount of clients I have. I have completed the necessary courses which have enabled me to continue my work… “

“The purchase of a vehicle and equipment has provided me with all I need to offer my services.  I have good regular contacts with local commercial customers.”

What needs improving?

Unsurprisingly, given the newness of the ventures, the most common improvement need is a wider client base.  Improvement to their product and it’s delivery, better and more equipment all got a mention.  One reported the need to reduce personal expenditure.  Another reported housing problems.  All of the improvement needs were to do with practical matters rather than personal or emotional problems.  Here is some of what they said:

“Increase the customer base, refine the range of products…Improve the level of equipment …Establish better working patterns. Formalise the business accounting process and learn more about contracts.”

“I need to increase the speed that I work at…”

“I need to distribute my business cards with local estate agents to increase my client base.”

“My day to day living expenses are higher than I can comfortably afford at the moment.  I have taken steps to remedy this…”

“I would like to increase my client base.”

“I have had numerous problems with my accommodation which has undoubtedly had a knock on effect to my work.  Thankfully this issue has now been addressed.”

Plans for the next quarter

All of the respondents cited increasing sales and marketing activity to increase the customer base.  Three referred specifically to websites as part of their promotional effort.  Investment in more equipment and further training both figured in the responses.  Their expectations are positive and optimistic. Here is a sample of the responses:

“Invest in a larger scale production …Develop a … web site …Make contact with a wider range of [customers].  Invest in further equipment …Establish a … database for tracking and accounting for orders.”

“I am hoping to take the following day courses: Energy Efficiency, Risk Assessment, COSH Assessment, Manual Handling, Small Tools and Working at Heights…I am starting my CCN1 which is the first step towards becoming CORGI registered.”

“I need to distribute my business cards with local estate agents to increase my client base … I hope to pass my driving test in August which will greatly improve the work I am able to undertake.   I hope to be in a position to purchase a van and buy the necessary insurance.”

“I have been working hard to get my website up and running and am confident that this will be a good source of business for me.  More advertising …Encourage ‘word of mouth’ referrals by current clients.”

“I have been offered a large contract in ******** and am considering moving to the area.”

Conclusions

All six businesses are up and running and in the first quarter they have generated twice the value of the start-up grant.  The beneficiaries are overwhelmingly positive in their attitude towards the project and, more importantly, to their own business prospects.

So far the success of this project indicates that supporting self-employment as an option is a very productive method for reducing reoffending.

Detailed assessment and preparation is a vital ingredient for success.  Fostering relationships with the sizable community of enterprise skills tutors in OLASS would help deliver that ingredient in a cost effective manner.  Targeting relatively modest support through tutors who have ongoing relationships with those planning self-employment could be very effective. 

This needs to be coupled with encouraging collaboration of these tutors with business incubator organisations in the community to provide vital continuity of support.  This collaboration must include participation in the assessment and selection process.

It is to be hoped that processes can be put in place to enable the lessons we are learning in this project to be applied elsewhere in the estate.

Dominic Murphy 13 August 2008