Business Place success should continue says director

In that time the 2,500 businesses have registered with it to win almost £35million of contracts, ahead of it's target of £20million, and six months early.

But despite exceeding all its targets the ELBP will be wound up next March when funding from the London Development Agency for the two-year project stops.

ELBP director Gay Harrington hopes its track record means the money will be found for it to continue.

She said: "The project has been a huge success and it would be a terrible shame to end it just as we are making significant inroads in the local area. For a £3million investment we've returned almost £35million so far, and we aren't even at the end of the project yet.

"We've reached an 'intelligent phase', where the project is coming of age and is able to experiment. We need to cash in as the economy gradually reaches an upturn so I hope we can secure funding to take the project forward beyond March."

The ELBP, which works with 10 councils in east London, has concentrated on helping smaller businesses, with around 90 per cent of the contracts awarded worth less than £10,000.

With support from the LDA, Canary Wharf Group - for whom Mrs Harrington works, and the Thames Gateway boroughs the free service has proved invaluable for companies that might otherwise have struggled during the recession.

It has also been able to help SMEs cut through red tape and put them in touch with decision makers, as well as organising networking events. For Mrs Harrington the need for the ELBP was obvious.

She said: "There is a lack of organisations like ours that deal with SMEs in the round. We work face to face with both suppliers and buyers, understanding their needs and tailoring our support accordingly.

"During the current climate it's important for SMEs to be the best they can be in the face of fierce competition. We are building competitiveness, confidence and encouragement. We are keeping buyers onside for the upturn."

After its soft launch the ELBP was officially unveiled a year ago and in that time it has seen its role, as well as its staff, expand. Its expertise has helped break down traditional mindsets of centralised procurement, while also negotiating the political minefields of local councils.

She said: "It's been a rollercoaster year but I'm very proud of what we've achieved. We set up the office from scratch with only three staff and have grown to 19, which means we are able to help a lot more people.

"We're helping to create a lasting economic legacy in East London and we want to continue to do so. We've been over target and under budget, although there is always room for improvement. I'm cautiously optimistic we will be able to continue beyond March.

"The ELBP is a good project. It understands the market, is good value for money, and it delivers."

For more on the East London Business Place, including upcoming events, visit elbp.co.uk.