Michelin loan fund tops £1m mark

A LOAN fund set up by tyre manufacturer Michelin to aid SME entrepreneurs in North Staffordshire has topped the £1m mark.

Michelin Development launched the North Staffordshire Business Challenge just over two years ago to help new start-ups and existing businesses to become more entrepreneurial.

The fund was designed to combat figures which showed the area was one of the worst performing region in the UK for new business development.

Despite launching the Challenge during one of the worst recessions for decades, Michelin said firms had responded positively to the call, with loans approvals increasing from zero in 2008 to 11 by 2010. In the process, 176 jobs have been created and North Staffordshire has lifted itself off the bottom of the table in the four areas where the loan fund operates.

The latest £25,000 loan has gone to Newcastle-under-Lyme based Winston Joinery. It has invested the funds directly into the company to help pay for a range of physical site improvements and development costs to the premises. Michelin Development will also provide expertise and advice to Winston Joinery in helping to start-up its new apprenticeship scheme which has already set on two new apprentices this year and plans to set on a further four apprentices in 2011.

Andy Wagg, Winston Joinery Managing Director, said: “One of the major issues for us when we took over this business was getting finance from the banks. When they were not prepared to support us, we approached Michelin Development and they were happy to provide us with required finance.

“We have used the money to meet a range of development costs such as new racking for the yard, lighting equipment and marketing software to help enhance our database. The Michelin money has been a great assistance and the help and advice they have provided for our apprenticeship scheme has helped in taking that forward.”

Since taking over Winston Joinery at the end of 2009 and saving the 20 jobs, Mr Wagg said the business was projected to have a turnover of more than £1m this year.

Working with large companies in the construction sector such as J & S Seddon, the joinery firm is looking next to expand into public sector schemes including housing and office development projects.  

Dave Smith, Michelin Development North Staffordshire Business Development Manager, said: “We issued the challenge two years ago with a view to sparking a North Staffordshire renaissance, getting entrepreneurs and existing businesses in the region to grasp the business nettle and establish North Staffordshire as one of the best performing regions.

“The clarion call has been heeded and North Staffordshire has shown itself to be a hotbed of ideas, innovations and business ambition. We are very proud to be approving loans to such forward thinking, go-getting businesses and long may it continue into the future.”