CIVIC leaders hope a £23million Government grant to encourage the next generation of entrepreneurs will stem the brain drain' from East Lancs.

The money for the area will be used to support the launch of more than 1,270 businesses over the next three years - double the number which would be expected to spring up in that time.

Bosses hope it will create more than 4,000 jobs. It is hoped the money will revitalise the economy after the collapse of traditional industries, and prevent talented youngsters from leaving the area.

Leader of the county council Hazel Harding said East Lancashire was a special case.

"Its economic base had eroded, leaving the area with a legacy of economic decay, and pockets of high unemployment and low pay," she said.

"We have to break that cycle by helping the people whose bright ideas can, with guidance, create a brighter future for East Lancashire."

The scheme will focus on business start-ups with grants, mentoring, training, and working in schools to encourage youngsters to start their own companies. The funding bid by Blackburn with Darwen Council, on behalf of itself and Burnley, Hyndburn and Pendle Councils, for the second round of Local Enterprise Growth Initiative, has now been approved.

Bosses said working with Blackburn Rovers, Burnley FC and Accrington Stanley to attract would-be entrepreneurs had helped the bid stand out. It aims to address low ambition and self-confidence, and self-employment levels which are below the regional and national averages.

It is hoped that if the scheme is extended to 10 years, the region's economy will see additional private sector investment of £185million.

Andy Kay, executive member for regeneration for Blackburn with Darwen Council, said: "There is a wealth of talent to be discovered. This funding will pave the way for those who want to start their own business or enhance an existing one."

Coun Peter Britcliffe, leader of Hyndburn Council, said investor confidence in the borough is high and funding will stimulate further growth.

Dave Edmundson, chief executive of Burnley Football Club, said: "Sport carries a powerful image that can be harnessed to engage people in a wide range of activities."