A GRADUATE business scheme that has already benefited many firms across the region has secured more than £2.3m.

Regional development agency One NorthEast has approved the funding for its Graduates for Business programme, part of its wider Driving Demand for Higher Level Skills activities.

The scheme introduces graduates to small and medium-sized enterprises (SMEs), and enables them to develop their business skills, while working on specific, high-level projects.

Gillian Collinson, One NorthEast's skills and higher education manager, said: "Retaining our graduates is so important for the future development of the region, and at the moment the North-East has a lower level of its economically active population qualified to degree level than any other English region.

"The benefit of the Graduates for Business programme is that it provides a way of introducing highly skilled people to regional businesses, which in turn will raise the number of former students staying in the region, increase the success of our businesses, and the productivity of the North-East."

Graduates for Business has been running since 2003-4, with more than 80 per cent of graduates placed with regional SMEs being retained in employment.

The programme gives businesses the opportunity to expand their markets, improve processes, develop new products, introduce technologies, increase sales and achieve financial savings. It also aims to:

* Provide a path for graduates through employment into enterprise and business

* Contribute towards encouraging enterprise and innovation in the workplace and workforce, in turn improving competitiveness

* Create enterprising and innovative individuals and businesses.

Ms Collinson said: "If we are to meet the ambitious Regional Economic Strategy targets of creating between 18,000 and 22,000 business and about 70,000 new jobs, we have to encourage our graduates to stay in the region.

"We need to show them they can have a successful career in the region, that they can realise their ambitions here, and Graduates for Business enables us to do that."