A WOMAN who started up a business after her husband lost his job said she was "gravely insulted" by Alan Sugar at a business event in Nottingham.

Lord Sugar, Enterprise Champion to the Government, held two question-and-answer sessions for businesspeople at the East Midlands Conference Centre last week.

He was answering questions about how the Government was supporting small businesses and giving advice. The woman, who did not want to be named, asked Lord Sugar how she could expand her business without losing her benefits.

She explained that she and her husband had to start claiming benefits after he lost his job at the start of the year. She then started up a cake-making business four months ago.

She said because they were on benefit, she could work no more than 24 hours a week.

He suggested the couple come off benefits and work full-time on the business.

When she said they would not be able to afford this and could lose their house, his response was: "If you wish to remain on the benefit system that's your decision. What am I supposed to do, wave a wand and change the benefits system?"

The woman left the meeting upset. She said she was humiliated by his response and is considering making a formal complaint.

She said: "I felt he was inappropriate for somebody who was there in his role as Government adviser. I thought he would have had something practical to say like, concentrate on producing the goods, or put an hour aside to make sure your books are up-to-date. I was completely taken aback."

A spokesman for Lord Sugar said: "The woman presented Lord Sugar with an unsolvable problem, and was aware of this when she put the question.

"Lord Sugar explained that if she was unable to give up the benefits, then her problem was impossible to solve unless, for example, she bought additional cooking machines and mixing machines, so that in the hours she was allowed to work she could make more cakes.

"She answered that she works from her small kitchen at home.

"The woman took exception to the answer and interpreted it that Lord Sugar said she should remain on benefits.

"It was clear to the whole audience what Lord Sugar said, and many people were surprised at her attitude. She presented a situation that was designed to be unsolvable unless she was prepared to take the risk of expanding, and if she was confident in herself and business, then that's what businesspeople do."

The event, attended by 600 businesspeople, was organised by East Midlands Development Agency and Business Link.

claire.carter@nottinghameveningpost.co.uk