A new enterprise grant fund designed to boost profits and bring budding ventures to life has been launched.

This fund aims to support 140 existing local businesses and help a further 160 people start up a new one.

The Shropshire and Herefordshire Business Enterprise Fund is supported by £1.1 million from the European Regional Development Fund which is managed by the Department for Communities and Local Government, and matched by the businesses themselves.

Communities Minister Baroness Hanham CBE said: "Taking the first step on the journey of starting up your own business is often the most difficult and keeping existing businesses afloat in the current climate is challenging. With reduced general finance and support available it is vital now more than ever that we are able to help the people and businesses in the local community.

"I am pleased that we are able to offer support to this project that will begin to remove the barriers preventing growth and expansion," she added.

Over the next three years two types of grants worth between £1,500 and £5,000 will be on offer to businesses in Herefordshire who are looking to either get a new business off the ground or improve and boost an existing business.

Councillor Roger Phillips, Herefordshire Council's cabinet member for enterprise and culture at Herefordshire Council said: "Shropshire and Herefordshire have declining rates of new businesses starting up and this was further impacted by the economic downturn where we witnessed more traditional sources of finance for businesses falling sharply.

"Through the new enterprise fund we can really start to help businesses in these areas seeking finance to improve their performance or get moving with new ideas," he added.

Due to European regulations, there are restrictions on the type of businesses that can apply, with retail and land-based sectors ineligible. To find out more about the support on offer, contact Herefordshire Council on 01432 383633 or visit www.herefordshire.gov.uk

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