Insider Media Limited

A rise in the number of would-be entrepreneurs in Northamptonshire looking to start their own businesses has been sparked by more employees being made redundant, it is claimed.

The First Enterprise Business Agency (FEBA) said the boom had been caused by those looking to use severance cash to start up on their own.

Richard Tyas, enterprise development manager at FEBA, said: "Even in these difficult times, people are still managing to find opportunities following redundancy.

"I think it's a case of employed positions being increasingly harder to find. Plus, people who may have received a redundancy payout have suddenly found they have capital to invest in a new business idea that they may otherwise only have ever dreamed about.

"We are also seeing a rise in people buying into franchises as these can often offer a lower risk due to the brand already being established."

Established in 1989, East Midlands-based FEBA is a business support organisation which provides services that help would-be entrepreneurs start-up and expand business throughout the region. It also offers cash from a loan fund on behalf of Enterprise Loans East Midlands.

Tyas added: "Across Northamptonshire, we have recently been helping a wide range of businesses take their first steps to success in sectors as diverse as catering, health and beauty, green energy and the motor trade.

"We've had a fantastic amount of interest from inner city start-ups and, in the last 12 months, have lent £118,000 to help start-ups in this area. We are now actively seeking applications from across Northants."