George Osborne was urged to provide new businesses with loans of up to £20,000 to help them create jobs, as he prepared to deliver his Budget.
Midland business leaders warned that Government attempts to get the economy growing again were failing and said “more radical measures” were needed.
The Black Country Chamber of Commerce warned that attempts to help industry by getting credit to employers had not succeeded.
Chamber president Paul Bennett said: “There is a need for a national fund to provide limited finance for new starts.
“Loans of up to £20,000 should be made available on a match-funded basis for qualifying businesses less than 12 months old.”
Mr Osborne said there was “no miracle cure” to fix the nation’s finances, and “painstaking work” was required.
His Budget came 24 hours after official figures revealed inflation had risen to 2.8 per cent, its highest level for nearly a year.
Hikes in energy and fuel costs were blamed for the increase last month.
Higher energy bills saw housing costs rise 0.5 per cent between January and February, while transport prices rose 1.2 per cent due to a 4p-a-litre surge in the cost of petrol and nine per cent increase in air fares.