Businesses in the district are set to benefit from a £25 million fund.

Up to 100 fledgling small businesses could get a cash injection from the new Regional Venture Capital Fund, which is supported by regeneration agency Yorkshire Forward.

The fund will offer up to £250,000 to growing small firms.

The regional pot, which is part of a national network of funds, has won backing from local pension funds and from two major UK banking institutions - Barclays Bank and the Royal Bank of Scotland.

It has backing from the European Investment Fund and the Department of Trade and Industry.

Graham Hall, chairman of Yorkshire Forward, said the fund will benefit small businesses across the region who have not previously gained from venture capital support.

He said: "We are now able to plug a crucial gap in the marketplace.

"Historically, the venture capital community has been much more interested in bigger deals, those above £500,000. This fund will address that imbalance, allowing more than 20 small businesses a year to access up to £250,000 and if needed further funding of up to £250,000."

The fund will be managed by Yorkshire Fund Managers, part of the Yorkshire Enterprise Group, on behalf of Yorkshire Forward and the DTI's Small Business Service.

Peter Garnham of Yorkshire Fund Managers added: "We have been active in this market for almost 20 years but with the RVCF we have, for the first time, the financial muscle to make a real difference."

Nigel Griffiths, minister for small business, said: "The fund will make a real difference to small and medium size firms hoping to access finance. Their success will encourage more entrepreneurs to start their own business and more would-be investors to recognise the benefits of investing in the region's SMEs."