The winner will be the location that can show itself as a hotspot of innovation and somewhere that is boosting local business and nurturing budding entrepreneurial talent.
Business and enterprise minister Mark Prisk said: "There are some fantastic enterprises across the UK that are starting up and growing to become real forces in business. Despite the difficult economic conditions, there are many entrepreneurs willing and able to make their business a success, helping to boost the economic growth of their local area and the UK.
"We want to make 2012 the year of enterprise. This is a great opportunity for local authorities and businesses to come together and show that they are creating a vibrant environment to allow enterprise to thrive."
