Birmingham is “already up and running” with initiatives to promote entrepreneurship in the city, especially within the creative sector, the city council has said in response to a call for more support for budding start-ups.

And regional development agency Advantage West Midlands said it was optimistic it was laying firm foundations to ensure entrepreneurial potential was realised in the city.

The statements came in answer to a warning by Bennie Gray, the founder of the Custard Factory in Digbeth, that Birmingham could face massive unemployment if it did not race to encourage more people to set up new businesses.

Coun Summerfield (Con Brandwood) said: “I could not agree with Bennie Gray more when he describes the key role that small businesses and entrepreneurs have to play in helping secure the future health of Birmingham’s economy, especially in the current climate.

“However where he issues a rallying call to action, I’m delighted to point out that faced with the current economic conditions, we in Birmingham are already up and running to meet the challenge.

“For the past four years the council has been working closely to boost entrepreneurship in the city by introducing a raft of new initiatives which will be just as timely and effective during times of slowdown and they are during boom.”

Coun Summerfield pointed to the council’s work to promote the city’s creative industry sector.

“Here the 'Business support scheme for creative industries' has assisted 1,200 existing and 250 new businesses, in the process creating or safeguarding 2,500 jobs and generating £15 million worth of new sales.”

He also highlighted initiatives such as the annual Creative City Awards and a scheme called the Enterprise City high growth programme where more than 60 businesses with potential to grow can access coaching, mentoring, specialist workshops and bid for grants to aid their expansion plans.

Mick Laverty, chief executive of Advantage West Midlands, said Bennie Gray was right to champion the role of the entrepreneur in Birmingham’s economy.

“As an agency we understand there is no room for complacency – we have a great deal of hard work to do.

“But we are laying down the foundations for growth with a number of exciting projects which will create jobs and raise the quality of life of people living and working in our region.

“There are difficult times ahead, but there are encouraging signs.”

Mr Laverty also pointed to the creative industries, particularly the digital sector, as an example of the entrepreneurial talent in Birmingham’s economy.

“Last week I had the privilege of speaking to a packed audience at the Hello Digital event in Millennium Point," he said. “I was there with television executives and our Regional minister, Ian Austin MP, to officially launch 4iP in the West Midlands.

“4iP is a commissioning hub for digital media funded by Screen West Midlands, Advantage West Midlands and Channel 4.

“Most people don’t realize that 50,000 people in our region are involved in digital media. This is greater than the number of people employed in our respected financial services sector.

“Creative industries turn over £2 billion a year in Birmingham alone, and Channel 4’s decision to base their lead commissioning hub here, when they could have gone elsewhere, is testament to our growing reputation.”

He added the agency was also working with businesses outside the creative sector and had set up the Young Person’s Enterprise Centre of Expertise to ensure the next generation of entrepreneurs comes through.

The agency is also working closely with Aston Villa FC, the Premier League and Enterprise Insight to set up the Aston Villa FC Enterprise Academy.

“I’m optimistic that we are laying down firm foundations for the future and our challenge is to ensure our obvious potential is realised,” he said.