THE Co-operative has launched an Enterprise Hub in York to encourage members of the public to set up new businesses in a different way.

The Co-operative has launched a £5 million UK-wide investment to promote the co-operative sector after the recent financial crisis had shaken confidence and trust in traditional business models, it said.

The hub, which was launched in an event at Bar Convent but will operate through a central website with York-based advisers, will provide advice, training and finance to support new and existing co-operators.

Its official launch follows a successful pilot scheme which helped 170 members of the community in the North Yorkshire village of Hudswell, near Richmond, to re-open their community pub.

Angela Davies, The Co-operative Group’s co-operative development manager, said the co-operative approach was enjoying renewed interest from a public concerned for the environment, ethical trading and sustainability.

She said: “Entrepreneurs are increasingly looking for an alternative approach to business to inspire changes to the way organisations and services are run. Following the financial crisis, people have opened their eyes to the co-operative business model to see its merits as a modern, effective and relevant way of doing business.

“It’s no coincidence that co-operating is increasingly being championed as a sustainable solution to the challenges facing the UK economy. The co-operative business model has, without doubt, an exciting part to play in fostering future UK businesses.”

The George And Dragon, at Hudswell, had been closed for two years when more than 170 villagers formed the Hudswell Community Pub initiative and raised more than £200,000 to reopen it.

Local MP and Foreign Secretary, William Hague joined members of his constituency buying shares in the cooperative, which will also provide community services including a library, shop, internet access and allotments.