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A European-backed small business support scheme has been launched in the North East with the aim of creating more than 400 new businesses and supporting in excess of 150 existing companies.

The government claims Business Support in the North East will help more than 1,700 people gain business skills.

It is hoped the £2m programme for the North East will help create 431 businesses and provide support to 164 existing small businesses over the next two years.

"A significant number of new businesses and new jobs will be created as a direct result of this project ensuring pre-start businesses can harness their full economic potential," said communities minister Baroness Hanham.

"Entrepreneurs from communities in all parts of the North East from North Northumberland to the Tees Valley will have access to this excellent business support programme that offers a real chance to make a difference.

"Private sector growth is vital to a strong economy, particularly in the small and medium enterprise sectors, and this project will play an important role in strengthening the North East's business base contributing to the growth of the local and national economy."

According to the Department for Communities and Local Government, Business Support in the North East will allow local enterprise organisations to offer a portfolio of support. This will include hands-on support from an enterprise coach, a two-day "boot camp" comprising workshops and one-to-one mentoring.

The project is funded by £1.06m from the European Regional Development Fund (ERDF) managed by the DCLG. Working in a consortium led by North East Enterprise Agencies Ltd (NEEAL) local enterprise and development agencies in the North East have matched this investment with £1.06m of their own funds.

"I am delighted that we have secured the funding for this hugely important work," said NEEAL chairman Paul McEldon.

"This funding will enable us to establish a regional and fully cohesive offering for potential business start ups across the region.

"This will ensure accessible and high quality business support is available to anyone considering starting a business which, given the uncertain environment and the importance of rebalancing the North East economy, is fantastic news for the North East as a whole."

Source: Insider News North East