There is a strange contradiction going on here and I can't quite work out how it will unravel.
Having worked in the Back to work industry, many many many many people are encouraged to do exactly what she did in setting up a business and then claim tax credits. They are then taken off the unemployment statistics. I can't remember the exact calculation, but so long as you earned approx. £50 a week from your business then you were considered 'in work'. Even if you only worked 1 hour a week for that £50, people were encouraged to say the rest of the time was 'admin' or 'marketing' to get the tax credits.
So presumably, people like the QT lady will just go back to claiming unemployment benefit.
When you examine the 'drops' in unemployment you will see that these sort of 'businesses' take up a very large proportion of the reduction.
Someone like this woman won't suddenly be able to go out and work 40 hours a week when she is a single parent to 4 kids.