A £25M scheme to create 10,000 jobs and set up 7,500 businesses in the region in five years was launched yesterday.

If successful, the InBiz Project 10k will be introduced across the UK, with London identified as the second project area.

The scheme, which involves several agencies, led by InBiz, aims to put 10,000 unemployed people in work by helping them set up their own businesses by December 2010.

The project has received the backing of Prime Minister Tony Blair, who said: "I wish this excellent initiative every success. It is wonderful to see organisations in the region working together to support the enterprise agenda."

InBiz, which has a head office in Stockton, Teesside, and employs 200 people in 47 branches across the UK, is a Government-funded organisation that has specialised in business start-up, training and support for the past 16 years.

Founder Terry Owens said that Project 10k's targets were "definitely attainable" by the end of 2010.

"If we just went along as usual and did nothing extra, there would be about 6,250 business start-ups in that time. So this initiative, with us all working together, means that creating 7,500 business is a very realistic target," he said.

"We will be stretching ourselves, but we have set targets that I believe we can beat."

Partners involved in the project include local authorities, Business Link, The Prince's Trust, regional development agency One NorthEast and JobCentre Plus.

Mr Owens said: "It is vital that we generate significantly greater entrepreneurial activity in the region and Project 10k is an exciting way of doing this.

"We have worked solidly over the past twelve months to get the support of a variety of influential partners on board, and partnership is the key to success in this ground-breaking initiative.

"InBiz has a proud record of achievement, with 86 per cent of our customers still trading or in work after two years, and there is no doubt that Project 10k will mirror this success."

For more information, visit www.inbiz.co.uk or call 08000 321001