Bank of America backs PRIME’s mission

Listen to this item Bank of America backs PRIME’s mission - PRIME Initiative - UK charity that helps people over 50 set up in business

Joint PRIME / Bank of America News Release: 27 November 2007
Embargoed until: 00.01am 1 December 2008

Bank of America and PRIME - Working Together to Support the Over 50s to Find Opportunity in Enterprise

LONDON - Research published today, commissioned by Bank of America on behalf of The Prince’s Initiative for Mature Enterprise (PRIME), provides new insights into the realities faced by older entrepreneurs in the UK.

The research was commissioned to mark the launch of a groundbreaking £2 million three-year partnership between the Bank of America Charitable Foundation and PRIME. It aims to unlock entrepreneurialism in the over 50s in the UK by helping this group get back into employment through setting up their own businesses. The partnership will focus on helping those over 50 realise their potential, challenge direct discrimination and enable more people to capitalise on their talents.

Bank of America’s partnership with PRIME forms part of the company’s new approach to community investment in the UK, myPotential myCommunity myEnvironment^TM, that focuses on building skills, unlocking and nurturing talent and increasing entrepreneurialism in marginalised communities.

The research shows that 16 per cent of those aged 55 to 64 have considered, but not realised, their ambition of establishing their own business, with 23 per cent wanting more relevant support to help them do so.

Older entrepreneurs are becoming increasingly important to the UK economy. The number of businesses launched by people aged over 50 has increased by half over a period of 10 years and this age group now accounts for 15 per cent of all business start-ups in England and Wales¹.

“We need to see a fundamental shift in attitudes towards older people …”

Laurie South, PRIME

Laurie South, Chief Executive of PRIME said: “We need to see a fundamental shift in attitudes towards older people and society needs to be more open to the talents and invaluable experience older people can provide to the UK. Through our new strategic partnership with Bank of America, we can continue to build our organisation to provide practical and financial support to even more over 50s throughout the UK.”

As the economic downturn continues to threaten employment opportunities for older people²the need for increased support remains critical. 54 per cent of the 50+ age group currently seeking work feel that the current challenging financial environment will have a detrimental effect on their employment prospects.

The benefits of investing in the 50+ age group is underlined by research showing that 70 per cent of businesses started by people over 55 are on average still operating after six years, compared to just 19 per cent overall³.

“We are delighted to be partnering with PRIME …”

Dennis Arnum, Bank of America

“We are delighted to be partnering with PRIME on such an innovative and significant platform in the UK,” said Dennis Arnum, Bank of America Chief Operating Officer for Europe, the Middle East, Africa and Asia. “The ageing demographic across Western Europe, and globally, brings with it significant challenges for society, governments and businesses alike. Our partnership with PRIME will create opportunities by unlocking the barriers to enterprise and releasing the entrepreneurial talent and wealth of experience within our community.”

As part of the partnership, Bank of America will also provide counselling through its employee business mentoring programme.

Each business that PRIME helps establish will provide a host of other comprehensive socio-economic benefits for the UK - including greater levels of wealth and job creation and a reduction in dependence on state benefits. Transferring one per cent of the economically inactive over 50s into self employment creates at least 25,000 new jobs and results in savings in welfare payments of £175 million⁴.

PRIME is strongly supported by the government who are working alongside the charity to realise the above benefits.

“There is no age limit on entrepreneurial spirit.”

Peter Mandelson, BERR

Secretary of State for Business Peter Mandelson said: “There is no age limit on entrepreneurial spirit. During the current economic climate it is even more vital that older people have the confidence to make their business ideas a reality.”

“We are currently working with PRIME, Business Link, Enterprise Insight and the Regional Development Agencies to make clear the business support available for older people, be it in starting a business or becoming self employed.”

- Ends -

Notes to Editors:

About the research

A full breakdown of the research referred to above is available on request.

Unless otherwise indicated, all research was gathered by GfK NOP during November 2008. This consisted of a nationally representative omnibus survey of 1,000 adults aged 16 and over. This included 472 respondents aged over 50.

1, 3 & 4 - Improving employment prospects for the over 50s, Christopher Smallwood and Linda Obiamiwe, PRIME (January 2008)

2 - Recent CIPD and KMPG research revealed that in light of the economic downturn almost one in five employers say that they are going to enforce the Government’s retirement age policy - which allows UK organisations to make workers over 65 redundant without having to provide a business reason for doing so - more vigorously. Redundancy fears haunt labour market, Chartered Institute of Personnel Development and KMPG (31 October 2008)

About PRIME

There are 3.6 million people in the UK aged 50-65 who are not in employment. Unemployed people over 50 suffer the highest long-term unemployment rate. But an estimated 800,000 people currently classed as ‘economically inactive’ could return to the work-force if barriers to employment were overcome. Of those older people who feel at a disadvantage in the job market, a staggering 81 per cent say the attitude of employers to their age puts them at an automatic disadvantage. PRIME was founded to address these issues and in 2007 helped more than 1,000 over 50s return to work.

For more information about PRIME, please visit: http://www.primeinitiative.org.uk

About Bank of America

Building on a long-standing tradition of investing in the communities it serves, Bank of America will embark in 2009 on a new, ten-year goal to donate US$2 billion to charitable organisations engaged in improving the health and vitality of its communities. Funded by Bank of America, the Bank of America Charitable Foundation gave more than US$200 million in 2007, making the bank the most generous financial institution in the world. Bank of America approaches community investment through an international strategy called ‘neighbourhood excellence’ under which it works with local leaders to identify and meet the most pressing needs of individual communities. Through Team Bank of America, employee volunteers contributed more than 650,000 hours in 2007 to enhance the quality of life in their communities nationwide.

For more information about Bank of America Corporate Philanthropy, please visit: www.bankofamerica.com/foundation.