Reported on Tue, 28 Feb 2006

The government has announced plans to provide significant funding for small and medium sized enterprises (SMEs) across the country, and a business loan can supplement the investment further.

The Local Enterprise Growth Initiative (LEGI) is a new scheme that will see the government give local authorities £126 million to help SMEs.

Ministers hope that the LEGI will promote entrepreneurial spirit among local businesses, as well as fulfilling earlier pledges to deliver renewable neighbourhood programmes.

Phil Woolas, local government minister, said: "We aim to create prosperous, inclusive and sustainable communities for the 21st century, places where people want to live that promote opportunity and a better quality of life for all."

Alun Michael, DTI minister for industry and the regions, explained that encouraging entrepreneurial frames of mind was integral for the financial health of the nation.

"Enterprise is a key driver for our economy and the importance of this new initiative is demonstrated graphically by two key facts from the latest Global Entrepreneurship Monitor survey," he said.

"First, the survey shows that the UK has the third highest rate of entrepreneurial activity of the G7 economies, behind the US and Canada. Second, the survey shows that you can teach or train people to be entrepreneurial."

Investment via a business loan is one of the best ways to encourage financial growth.

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