The unit will host four events, each designed to help local fashion retailers get involved in the festival.

Dawn Holland, business innovation officer, said there were 5500 small businesses in Bendigo, with 85 per cent employing less than five staff. 

She said the statistics showed retail was the "largest employer sector for the region".

"Bendigo Fashion Festival is an annual event with a strong focus on developing Bendigo as the fashion retail centre of the region," Ms Holland said.  

"While encouraging locals to shop local, the festival would also like to attract external fashion patrons to visit, stay and spend in Bendigo. 

"This is another great example of a partnership with the Bendigo Fashion Festival to support our retail sector and to promote the wonderful opportunities for both consumers and businesses.

"The festival is a great platform to showcase our local talent and capabilities."

Bendigo Fashion Festival committee chair Sue Opie welcomed the partnership. 

"This means the the Bendigo Fashion Festival can go to a new level. It has always been important for us that we give back to the retailers," she said. 

"One of the core principals of the fashion festival is we let people know that there are retailers and designers in Bendigo that people can use. 

"It means that we are giving them the tools to be able to further drive their business." 

The Bendigo Fashion Festival will be held in October. It was started in 2007 and is entering its ninth year. 

The festival was founded as a way to support and promote local businesses through raising brand awareness, encouraging people to buy, stay and eat locally.

Ms Holland said the unit's would run events in the lead up to the festival. 

She said the partnership aligned with the city's economic development strategy - launched earlier in the year.

Businesses wanting more information should contact Ms Holland on 5434 6247.