Plans to help develop small businesses have been given a cautious welcome by a business leader.

Ministers have announced measures to help entrepreneurs and the growth of existing small firms, including expanding the scope of a fund to help create up to 40,000 new businesses by 2013, doubling the original target.

The Government has set out its approach to supporting small firms. This will include closing the Business Link Yorkshire advice services as part of an overhaul of state-funded business support. Regional business link services are to be replaced with an improved national website supported by a call centre.

The proposals, outlined in the document “Bigger, better business: helping small firms start, grow and prosper”, confirm that Business Link Yorkshire will disappear in November.

The New Enterprise Allowance will help unemployed people looking to start their own business. It will be available to people who have been claiming Jobseeker’s Allowance for more than six months.

It will provide access to business mentoring and offer financial support. There is also more focus on private sector provision of business information, guidance and advice.

The businesslink.gov.uk website will provide information.

Ministers also want a network of at least 40,000 experienced business mentors offering practical advice to existing businesses and new entrepreneurs.

Business and enterprise minister Mark Prisk said: “In the current economic climate, it has never been more important to promote an enterprise culture in the UK.

“It is vital that businesses have the information, advice, and mentoring they need to grow and expand.

“The best people to advise small businesses are those who have already started and run successful companies, so it is particularly important that this new framework for helping businesses to improve focuses on providing access to business mentors.”

Sandy Needham, chief executive of Bradford Chamber of Commerce, which represents more than 1,000 mainly small and medium sized businesses, said: “The simplification and clarification of information and advice is welcome.

“It is also good that new entrepreneurs who are taking a big risk to start a business will be able to draw a weekly allowance and access start-up loans.

“We need more details on how the funding will be provided and how much and also how the army of business mentors is going to work.”