More needs to be done to help new businesses in Shropshire according to the regional development agency.

Advantage West Midlands said it had invested £117 million in supporting business projects in the last financial year and a further £162 million on place schemes. In its annual report, bosses say they have enjoyed some great successes, but also admit the global downturn has had an impact.

They said it meant they had underperformed in some areas with the environment for regional businesses described as “extremely challenging”.

The report to board members says AWM has achieved its core targets for areas such as reuse of brownfield land, safeguarding 16,997 jobs, supporting 22,524 businesses and assisting in skills development.

However, the agency says it failed to meet targets for business creation, leadership and management skills and securing work for graduates.The report says: “The financial crisis has impacted upon our ability to support the creation of business start-ups. We underperformed on our targets for business created, surviving 12 months, as the climate for regional businesses is extremely challenging.

“The nature and focus of support from Business Link is altering as a consequence, reflecting the current market demand for business support which is more concerned about cash flow, downsizing and diversification. We are examining, with Business Link, what action can be taken to improve performance in 2009/10 and will have constructed new targets in line with our revised expectations.

“Difficulties continue with the graduate recruitment service due to a lack of graduate vacancies.”

The report also points out the highlights of the year including the creation of the £3.5 million Rural Enterprise Centre in Shrewsbury, which also includes a satellite premises in Ludlow.

AWM says it has also contributed £8 million towards development at Blists Hill, the largest visitor attraction in the Ironbridge Gorge Museum Trust’s portfolio of sites, which aims to increase visitor numbers by 95,000 a year.