The chief executive of an Oxfordshire enterprise agency is to help distribute a new £75m Government fund to set up incubator units for new businesses.

Roger Cowdrey of the Thames Business Advice Centre (TBAC) is one of six people to form a company called Incubators Workspaces Everything (IWE), which has now won a contract from the DTI to vet loan applicants for loans.

The new fund is being launched this week by the Small Business Service (SBS) to help entrepreneurs realise their ideas.

It aims to provide an instructive and supportive environment for businesses in start-up and early stage; access to small workspace units on flexible terms with easy-in, easy-out terms; access to early stage finance; networking and peer group support; broadband communication links.

Loan applicants will need to show a viable plan to establish incubator units anywhere in the country.

Mr Cowdrey said: "It was quite a coup to win this contract. TBAC will benefit financially, as it will receive money when I am seconded from time to time to IWE."

TBAC has considerable experience in establishing incubator parks. It manages parks in Grove, Harwell, Abingdon and Oxford and will start another in Culham next week.

IWE will assess applications before forwarding recommendations to the Investment Panel at the SBS.

Mr Cowdrey added: "The problem at present is that people establishing incubator units often face a shortfall, despite help from such agencies as local councils, their local Business Link, the Single Regeneration Fund, or the Regional Development Agency. This fund is designed to fill that gap."

He explained that incubator units do not necessarily provide cheaper premises, but the support services they offer could mean the difference between success and failure.

He said: "Grove Park has had 109 businesses through its doors in four years. Only five have ceased trading. The park has generated 450 jobs."