A groundbreaking tech accelerator programme has been launched in Oldham, aiming to address the financial burdens known as the poverty premium. Wayra Fair By Design is set to support innovative start-ups that can develop cost-effective solutions for low-income individuals.
The initiative, a collaboration with Wayra UK, seeks to bolster up to seven start-ups annually. By tackling essential costs such as energy and loans, the programme aspires to relieve financial pressure on those living in poverty through technological innovation.
Understanding the Poverty Premium
Individuals in poverty often face higher costs for everyday essentials like energy, insurance, and credit, exacerbating their financial struggles. Despite limited resources, they pay more for basic services, creating a cycle of economic disadvantage.
A 2016 University of Bristol report highlights an average annual poverty premium of £490 for low-income families. This sum could significantly ease the financial burden, covering necessities such as winter heating or children’s clothing.
The Objectives of Wayra Fair by Design
Wayra Fair By Design aims to empower entrepreneurs to devise sustainable solutions for the poverty premium’s challenges. With a focus on reducing costs, the accelerator provides opportunities to innovate within economic and social frameworks.
Gary Stewart, director of Wayra UK, emphasizes the need for accessible solutions. He articulates the core mission, “It should not cost more to be poor,” reflecting the programme’s commitment to addressing inequality through entrepreneurship.
Financial and Professional Support for Start-Ups
The programme pledges approximately £70,000 per start-up, combining cash with essential business services. Start-ups benefit from the expertise of investors, mentors, and coaches, fostering a conducive environment for innovation.
By collaborating with Telefónica and other partners, Wayra provides access to extensive resources. This support is intended to catalyse the development of scalable, impactful business models targeting poverty-related issues.
The Role of Regional Development
Oldham has been chosen due to its strategic advantages, including a young, diverse population and proximity to Manchester. The town is poised for tech-driven growth, supported by ongoing investments in infrastructure.
Wayra UK recognises Oldham’s potential for nurturing a thriving tech ecosystem. The local leadership’s enthusiasm and regional connectivity create a promising platform for cultivating innovative start-ups.
Investment and Collaboration
Funded by the Fair By Design Fund, this initiative brings together prominent partners like Big Society Capital and the Joseph Rowntree Foundation. With an initial fund of £8 million, the programme aims to expand further by raising £20 million.
Jean de Fougerolles of Ascension Ventures expresses optimism, highlighting the transformative potential of the fund. By supporting innovative ventures, the programme seeks to redirect the billions lost in poverty premiums to those in need.
Community Impact and Future Prospects
The accelerator promises to energise local economies while providing a launchpad for emerging businesses. Its impact extends beyond Oldham, potentially fostering nationwide progress against poverty.
Jean Stretton of Oldham Council highlights the programme’s local significance, hoping it will inspire a new wave of grassroots entrepreneurship. The council fully supports initiatives that aim to provide fairer economic opportunities for its residents.
Wayra UK’s Broader Mission
As part of Telefónica’s Open Future_ network, Wayra UK has a history of supporting transformative ventures. With four sites across the UK, it has fostered numerous achievements, such as the innovative platform WeFarm.
The Wayra Fair By Design programme exemplifies Wayra UK’s commitment to social impact, reinforcing its role as a leader in supporting socially-driven technological advancements.
The launch of Wayra Fair By Design marks a pivotal step in tackling the poverty premium. By fostering innovation and supporting promising start-ups, the programme aims to alleviate financial burdens on low-income households, paving the way for a more equitable society.