A MAJOR £165,000 grant has been earmarked to help the Forest's micro companies grow and banish its reputation as a graveyard for businesses.

The Local Action Group funding, which has been given to business promotion agency Gloucestershire First to cover a two-year period, will help firms with nine staff or less to stabilise and hire new staff.

Stuart Barnes, advocate for Gloucestershire First, said: "Statistically the Forest has the highest business fail rate in the county and the focus of this project is to start to turn this situation around.

"The project is designed to work alongside and help existing Forest micro-business groups to provide additional support for their members and therefore enhance their membership.

"We will also work with individual companies on a one-to-one basis as required.

"The project is not about networking, but about sustainable learning groups being formed, which can draw down experience from others including Forest entrepreneurs.

"The key aims of this project are to develop and grow a sustainable business community that works constructively together showing that the Forest means business."

Bob Watters, chairman of the Local Action Group, said the project would be a catalyst for long-term growth.

"The project will be in two phases with identifying businesses that need support, and determining their requirements, being the first," he said.

"The second phase will be helping them to develop."

"The Local Action Group is proud to be able to fund this and Gloucestershire First, with their vast amount of experience in business, are best placed to do this.

"Business advocates will be there for firms to offer advice on new markets and give them tips on how to develop based on expected future trends.

"We want to give firms in the Forest the best possible chance of effectively competing in their markets.

"This is a completely new way of doing things."

He added: "The project will also serve as a link between local schools and employment agencies so businesses have access to the appropriate level of resources."

Companies which do not wish to get directly involved will still be able to benefit.

Gloucestershire First will be producing case studies through the duration of the project which companies can call upon to get ideas to drive their own development.