The atmosphere was buzzing as a packed audience took to their seats for the launch of the Winchester business Excellence Awards on Wednesday.

City centre manager, Graham Love, welcomed the mayor, Cecily Sutton, members of the business community, sponsors and guests to the competition - now in its third year - to the Paul Woodhouse suite at Winchester Cathedral.

He said support for the contest, which seeks to find the best medium and small enterprises in the district, was at an "all-time high", and welcomed two new sponsors to the event - Denplan, the largest private sector employer in the city, and University College, Winchester.

Encouraging businesses to take up the challenge, he said there was no better place than prosperous Winchester to host such a competition and winners would undoubtedly enjoy a boost in trade.

"People here work harder, produce more, spend more and even learn more than in many other places."

The audience then heard from two of last year's winners. Tony Mawson, who runs Mawson and Co, a hairdressing firm in the city, which won the award for service excellence in 2004, said winning had been the "icing on the cake" for the company and had raised its credibility.

"It raised our positive profile in the city and beyond and made recruiting and attracting clients easier," he said.

Felix Bulger, from Homelodge Buildings Ltd, described how the small, Crawley-based construction firm - winners of 2004's best small business award - having increased its turnover from £7,000 to over £1.7m in 17 years.

"It boosted morale of staff and our customers were impressed. It increased our press coverage, PR and orders," he told the audience.

"It's a great opportunity - don't miss out," he added.

The award scheme has six categories. They are the University College Winchester Award for Business in the Community, the Woodruffs of Winchester Award for Service Excellence, the Denplan Award for business excellence through people, the Dutton Gregory Solicitors Business and Education in Partnership Award, the Hampshire County Council New Business of the Year Award, the Winchester City Council Small Business of the Year Award.

An application form will appear in the Hampshire Chronicle from next week and entry packs may also be obtained by writing to the Winchester Business Excellence Awards Office, Abbey Mill, Winchester, Hants SO23 9LH; by telephoning Dawn Gear or Joanna Cassey on 01962-841000 or by visiting www.winbiz.org.uk. The deadline is Monday, February 28th.