The YouTrade contest will give £2,000 grants to ten businesses in the north east to start their own eBay ventures.

Andy Walton, from Regional Development Agency One NorthEast, told icNewcastle:

"If we are to bridge the productivity gap which exists between this region and the rest of the country, we have to increase business start ups and entrepreneurialism."

One NorthEast and the North East Regional Portal are jointly backing the contest, which will be launched on 18 November as part of the Start Your Business 2006 event at St James's Park in Newcastle.