The government has pledged millions of pounds for communities to run their own businesses.

Ministers say the new community interest companies will "radically change the social enterprise sector" by enabling community groups to fund their own firms.

Forum Response: Federation of Small Businesses

A spokesman for the FSB told ePolitix.com: "The FSB has a number of social enterprises amongst its membership and actively supports the work of the government's Inner City Forum.

"The principle of community interest companies is sound but we would be concerned if these companies have access to government funding not available to traditional small businesses."

Forum Response: Institute of Directors

Richard Wilson, business policy executive at the IoD, told ePolitix.com: "The IoD welcomes any measures that help to promote enterprise in the UK's least prosperous areas.

"However, the best way to promote enterprise is keep the tax and regulatory burdens on business low.

"At the same time, the government needs to crack down on crime, because this can deter the emergence and growth of new businesses."