AN upswing in small business start-ups has gripped Newport and Gwent according to the region's enterprise agency.

NGE has reported an upsurge of 50% in the companies it has assisted in 2003 compared to the previous year.

Jon Hughes, deputy managing director of NGE, said: "We saw 600 come through in 2003, compared with 400 the year before.

"Numbers have been rising year on year, but never as spectacularly as this.

"It means that the small business sector is now contributing even more to job creation and wealth generation in the region."

NGE has calculated that 1,145 jobs were created during 2003, supported by private and public sector investment of £8,592,000.

These are claimed to be the highest figures recorded since the agency was founded 22 years ago.

Mr Hughes believed the rush to self-employment has been spurred by the buoyancy of the economy.

"When the economy is strong people who have a dream of being their own boss are more inclined to take the plunge. They feel the risk of self-employment is reduced during an economic boom."

A favourable interest rate regime has also encouraged an entrepreneurial spirit.

While Newport accounts for roughly half of the new ventures, other areas are showing promising signs of business confidence. Abergavenny and north Monmouthshire are hot spots, as are the tops of the Valleys.

Mr Hughes said: "It's good that parts of Gwent are coming through as well as Newport, which has traditionally been the chief generator of new firms." The agency claimed that most of the 600 new companies are growth businesses.

"By growth we mean that the company will employ additional staff and is aiming at a turnover above the registration limit for VAT."

One such business is steel stockholder Cwmbran Steels on the town's Springvale Industrial Estate.

NGE is to providing ongoing support and advice to the company, which has seen demand outstrip the capacity of its present home.

Managing director Stephen Walden said: "We could not have succeeded without the help we get from the agency. They have advised us all the way, and have offered advice and practical help."

An important part of the support was help in obtaining a £4,000 loan from the UK Steel Enterprise Small Loans Fund, administered by NGE.

"This enabled us to purchase capital equipment and was extremely helpful," said Mr Walden. NGE claims its success in playing midwife to new firms is partly due to its links with local authorities other agencies such as the WDA which funds the New Business Start Programme.

Mr Hughes said self-employment is a cost-effective means of creating jobs.

"Inward investment projects are obviously excellent for the area and help to sustain smaller companies but these can be expensive to attract in the first place.

Mr Hughes said: "They are a vital part of the economy and, with one eye on the future, we must hope that this upsurge in enterprise will continue."