Astonishing savings and expansion are possible for micro-businesses in York and North Yorkshire which take advantage of a new computer grant programme.

The new grant, drawn from a European fund, will subsidise information technology and equipment by 30 per cent and offer special training at half price for small businesses in the region employing up to three people.

Organisers of a similar scheme in Sheffield, outlining their achievements, brought gasps from delegates representing training organisations and computer companies at the launch of the York Business Development Ltd grant at the Mansion House, York.

Paul Pascoe, project manager of the Sheffield scheme, said his organisation had visited and helped 154 small firms who in 18 months had taken on subsidised technology. Another 30 were now on stream.

Some 31 of these businesses had been monitored and it was discovered that by entering the microchip age they had: slashed unnecessary stock levels by a fifth reduced expenditure to the tune of £214,000 increased turnover by 30 per cent increased profits by 14.5 per cent on average improved the customer base by around 30 per cent.

The monitoring survey had also showed that the majority felt they were more effective, more valid, more interested in further training and as many as 89 per cent said they felt the technology experience had left them more confident as business people. More significantly, fears that computers would take over jobs from people proved groundless. On average the firms monitored had employed one more person since taking advantage of the computer grants and subsidised training.

Ultimately Norman Whyte, chief executive of York Business Development Limited, hopes to start a training course for one person in each of 150 microbusinesses with newly-equipped computers in the region by May and, after a summer break, resume the courses in September.

If the Sheffield pattern is strictly applied here then in time it will mean 150 more jobs, but Mr Whyte's aims are more modest. "We are targeting an extra 40 more jobs, but we hope to exceed that."

Eligible businesses in the York travel-to-work area as well as Harrogate will get on-going assistance and consultancy as part of their 30 per cent off the discounted price of the latest Pentium 200, Microsoft Works and a colour printer.

York Business Development Limited is negotiating with local suppliers and some tenders are being formulated.

Any small business proprietor interested in entering the new age of information technology should contact York Business Development by phoning 01904 554444.

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