Over £1m in grants and training will be shared by 150 individuals each year in a new five-year programme devised to "build a force of community entrepreneurs", which launched today.

The Lloyds Banking Group Social Entrepreneurs Programme is supported by the School for Social Entrepreneurs (SSE) and funded by the Lloyds Banking Group with additional investment from the Nominet Trust.

In each year of the programme start-up grants of £4,000 will be awarded to 130 social entrepreneurs and 20 scale-up grants of £15,000 will also be allocated. An annual 'social entrepreneur of the year' award will be given with a grant of £25,000 and a place on the national SSE learning programme. All entrepreneurs in the programme will receive SSE training and access to its existing business networks.

Alastair Wilson, chief executive of the SSE, spoke of the need for the programme and the importance of supporting entrepreneurialism. “To tackle the huge social and environmental challenges that we face today, we need to recruit inspirational people with entrepreneurial flair from our communities – and give them the best tools to succeed.

“This is about real people striving to make a difference in real places. Social change doesn’t happen by itself. It needs action, organisation and leadership in those communities,” said Wilson.

The Nominet Trust will look to work with entrepreneurs in the programme, encouraging the use of digital technology in their initiatives.

The grant applications window opens from today until 25 May with the programme due to begin this October. Grants will be awarded in eight locations: London, Yorkshire and Humber, North West, Bristol, East of England, Cornwall, Hampshire and Scotland.

The launch took place at the House of Lords, with support from Simon Hughes MP.