Jill Bradshaw failed to turn a profit and wanted to go back onto the unemployment benefit while continuing to run her shop.

A Southland woman who has received financial assistance from the Government to start a business has accused it of "dropping the ball" just as she is getting established.

The woman, Jill Bradshaw, says she will have to close her business unless the Government continues to support her.

However, the Ministry of Social Development says Bradshaw has received the maximum funding available for her business and there is now an expectation it be sustainable.

Bradshaw said if the Government did not continue to support her, the approximately $50,000 of government assistance she had received over the last few years would be wasted.

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The road to starting her own business began several years ago when Bradshaw was working in a furniture shop.

She said she was unhappy with the work, went on the unemployment benefit and told Work and Income of her plans to start her own business making and selling cushions.

She used her unemployment benefit money to buy materials and make cushions before selling them wholesale, she said.

"They supported me over a two year period with the unemployment benefit and didn't ask me to look for other work because they knew I was working towards my own self employment," Bradshaw said.

Last year she decided to investigate opening her own store in the Invercargill CBD.

She applied for a grant, which the Government offered to support people into their own businesses, and was accepted for the grant after submitting a business plan.

Bradshaw said she received $10,000 to set up her shop, called Lily and Cedric Designer Cushions in Invercargill's Dee St, and the remaining $13,000 was paid to her in monthly instalments for wages over an eight month period while she tried to get the business turning a profit.

However, she failed to turn a profit and asked Work and Income if she could go back onto the unemployment benefit while continuing to run her shop, she said.

She believed she needed ongoing support for another 6-12 months before her business became self sufficient.

"I think it takes that long for a business to get noticed," Bradshaw said.

Her business was now at a pivotal point where she could cover expenses, but not support herself; she needed a bit more time to turn a profit, she said.

She said Work and Incone agreed to put her back on the unemployment benefit while she ran her shop, but told her she had to be available for fulltime work.

She was unimpressed, saying it was both ridiculous and impractical because no one would employ her while she was running a business.

"The Government has probably invested a good $50,000 into me in the past three years and now they want me to find a job. It doesn't make sense."

"Why would they support me to this point and then drop the ball."

She believed her business had potential but said she did not know how to make it work any faster.

"I am probably going to have to close the shop at the end of the month unless I can get some support," she said.

Bradshaw met with Work and Income on Tuesday morning and it was "putting in an application for me for an emergency benefit that may be possible for 12weeks".

Ministry of Social Development regional director Sue Rissman said on Friday, in response to emailed questions, that supporting people into running their own businesses through the Flexi-Wage scheme recognised that self-employment could be a path to rewarding, meaningful work.

"It recognises that starting a business can be risky, and requires careful planning and consideration. We can support people with a job-seeker support benefit while they grow their business, however they must also be available for and seeking full time work if matched to a job," she said.

"Starting in August 2015, we have assisted Ms Bradshaw with the maximum level of Flexi-Wage assistance the law allows for."

Support through the Flexi-Wage scheme was delivered over 36 weeks and Bradshaw also received the support of a business mentor, Rissman said.

"Funding was initially granted for 28 weeks, and we were able to assist Ms Bradshaw with further funding for 8 weeks at her request."

"As part of the Flexi-Wage code of conduct agreement that Ms Bradshaw signed, it is made clear in writing that there is an expectation that any business will be sustainable once the Flexi-Wage funding ceases."

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