UP to 100 jobs and 28 business start-ups are expected to be created following Yorkshire Forward's decision to part-fund the construction of a number of business incubator workshops at Scarborough Business Park.

The regional development agency (RDA) has contributed £200,000 towards the cost of developing the workspace scheme at the town's business park. The project will be led by Scarborough Enterprise Agency (Sea).

Money will also come from European Regional Development Objective Two funding and the Sea's resources.

Sea is a not-for-profit organisation specialising both in the provision of advice and also in the development of managed workspace units for start-up or growing businesses.

It has 102 units around the North Yorkshire town, with a 98 per cent occupancy rate.

Andrew Wallhead, head of North Yorkshire at the RDA, said: "Yorkshire Forward is pleased to be actively involved with this project, which will kick start activity on this part of the site.

"Scarborough Enterprise Agency has a strong record of success in the development of managed workspace units for start-up or growing businesses. We are confident that this announcement will have a positive economic impact in Scarborough and the surrounding area."

Chris Jinks, chief executive of Sea, said: "We are delighted that Yorkshire Forward has demonstrated its faith in this development which will be completed by February 2004.

"The site has space for 20 office units based in a two-storey office block, which will also contain a conference room, training suite and catering facilities.

"There will be an additional 20 external workshop units to provide facilities for businesses that require high-tech workspace rather than offices."