The Federation of Small Businesses (FSB) has joined with the government to offer up to 10,000 graduates support through initiatives such as internships in small and micro organisations.
Prime minister Gordon Brown said that even in the current economic climate, a new generation of young Britons will be inspired to be ambitious and join enterprises through its graduate recruitment drive.
The FSB said it will encourage its members to offer further internships, with the extra places being funded by a grant administered through the Higher Education Funding Council for England and universities.
The University Careers services will help match graduates to the most suitable opportunities.
"Small firms are the countrys job creators – central to our economic recovery – and more than half have said they would employ more staff if they were given the right support," stated national chairman of the FSB John Wright.
The Confederation of British Industry previously urged the government to provide more cash to cover the cost of apprenticeships, stating that this could help support young people entering the job market.