A BUSINESS support agency aiming to create new businesses in East Lancashire has been awarded £500,000 over three years by the Government.

East Lancashire Growing New Business in Disadvantaged Communities was set up by Business Services East Lancashire, who applied to the Phoenix fund.

The fund was set up by the Department of Trade and Industry in 1999 to encourage entrepreneurship in disadvantaged communities.

Marketing manager Rob Carder said the project aimed to create 50 new businesses worth £7million and would be targeting women, the over 45s, the Asian community and people without qualifications.

The agency, together with the Asian Federation, put in a bid earlier this year and both hope to be showing the signs of success within a year.

Four other schemes in the North West of England also were beneficiaries in a scheme worth £14.5 million pounds nationally.

Mr Carder said: "Most of the money will be spent on delivering services so we can transfer knowledge to people who would not usually think about going into business.

"It is too early to say what exactly will be happening, but we will be delivering more services such as personal business advisors, financial advisors, and how to get Government assistance.

"We hope the cash will add £7 million to the local economy if we achieve our target of 50 new businesses."

Announcing the winners, small business minister Nigel Griffiths said: "If economic growth is to be maintained, it is critical there is an increase in the number of people starting new businesses.

"We are encouraging people who face more hurdles when launching their ideas such as older people, disadvantaged groups from inner city areas and women."