EU cash boost for new businesses

Nov 18 2009 by Iain Laing, The Journal

AROUND 140 companies are expected to be created with the £1.5m investment of European cash to boost a North entrepreneurship scheme.

The cash will go to expand work by Business Link in the region to provide more advice to small firms and those looking to start up their own business. It adds to a programme which aims to create 500 firms and create or safeguard around 1,400 jobs.

Business & Enterprise North East, which delivers the region’s Business Link service, has landed a further £1.48m investment from the European Regional Development Fund 2007-13 through regional development agency One North East.

It adds to the £9m ERDF granted last year to open up more business support solutions and funding opportunities and enhance Solutions for Business, the Government’s package of publicly funded business support designed to help companies start and grow.

The financial boost also allows the Business Link service to field additional staff and offer more Solutions for Business support, including an ‘Understanding Finance for Business’ programme to help companies enhance their financial capacity.

BENE chief executive Alastair MacColl said: “This new investment will deliver a series of practical workshops to help SMEs in areas such as financial planning, money management and raising finance for the business.

“The additional Solutions for Business support available through the North East England Investment Centre will be targeted at pre-starts and SMEs which match defined criteria to deliver significant economic benefits to the region, creating and safeguarding jobs, and growing and sustaining businesses.

“Beneficiary businesses will also have access to an online learning resource with an investment finder function, support material and mentoring facilities.”

The aim of the overall £10.5m project is to deliver tailored support to businesses and individuals looking to start up in business via the identified Information, Diagnostic and Brokerage (IDB) model under the Business Link brand.

It will also increase business support delivery in hard to reach areas and in communities with lower business densities and improve customer service under the existing Business Support Simplification Programme.

One North East chief executive Alan Clarke said: “ERDF is a key component in the drive to improve the range of services delivered by Business & Enterprise North East.

“The Information, Diagnostic and Brokerage project delivered under the Business Link brand is already proving an invaluable channel for businesses to start up and grow. This additional investment from the European Union is another strong contribution to regional economic development.”

:: For information on the wide package of support available to regional companies, call Business Link on 0845 600 9 006 or visit
www.businesslink.gov.uk/northeast