The 13-year-old Encounters Short Film Festival boasts an impressive range of past alumni. UK film-makers including Lynne Ramsay, Damien O'Donnell and Bille Eltringham all had their first shorts screened at Encounters. And the event remains a major talent discovery hotspot on the industry calendar.

Held in Bristol, in the south west of England, Encounters focuses on both animation and live-action short films from UK and international film-makers alike. This year's festival will screen a record 187 films selected from more than 1,700 entries from 66 countries.

UK highlights include Simon Ellis' Soft and Daniel Mulloy's Dad (see right) while international highlights include Till Kleinert's Dogmeat and Stefan Kornatz's See You At Home, both from Germany and Spanish director Arantzazu Gomez Bayon's A Quiet Man.

Most films will be competing for one of Encounters' 15 major awards, which include the BBC Three new film-makers award (worth over $10,000 (£5,000) for the winner), the best of British award, the international jury award and the UK Film Council audience award.

"Eastern Europe is really coming into its own," says Encounters' creative director Mark Cosgrove on this year's selection. "As Romanian features are gaining international profile this is true of their short films. A case in point is Radu Jude's The Tube With A Hat. This year we are profiling Polish film-maker Anna Kazejak who, for my money, is one of the most interesting film-makers coming onto the international scene. While entries from Brazil would seem to suggest they are redefining surrealism in their own quiet way - Pablo Lobato's Autumn is a perfect example."

Events this year include Spotlight On Singapore, which will see director Royston Tan in attendance, and a debate on animation training. Directors Richard Eyre and Damien O'Donnell and screenwriter Frank Cottrell Boyce are among those taking part in on-stage talks.

In an age when shorts are instantly viewable online, Encounters remains as important as ever as a place to develop contacts, meet people and exchange ideas.

"Over the past couple of years there has been a real sense that the UK film industry has come in force to Encounters," says managing director Sue Lion. "Talent is being spotted and business is being done."

The number of buyers set to attend is up this year, with 10 coming from Europe and North America, as well as a dozen European programmes. The event's digital viewing library has been improved and will hold more than 500 new titles available for on-demand viewing throughout the festival.

Encounters is also a strong audience event. "The audiences are knowledgable about the short-film landscape and have a great understanding of the form," says Rebecca Mark-Lawson from Lifesize Pictures, which manages all of the UK Film Council's short-film initiatives. "The British films selected for competition illustrate the vibrancy and diversity of short film-making across the country."

And how exactly does Encounters uphold its reputation as a talent hotspot' "We look for quality," says Cosgrove. "There is no other way of putting it."

UK FILM COUNCIL SHORT FILM FINANCING SCHEMES

CINEMA EXTREME

Co-funded by the UK Film Council and Film4, the Cinema Extreme initiative funds film-makers with a distinctive directorial voice and cinematic flair. Budgets are around $100,000 (£50,000) and the scheme intends to provide film-makers with a stepping stone to a feature film. "Cinema Extreme challenges film-makers to show they can handle long-form cinematic narrative," says Rebecca Mark-Lawson of Lifesize Pictures.

Films are a maximum length of 40 minutes, chosen from an open application. Last year 680 applications were received; 30 went through Cinema Extreme's development workshops and five were commissioned. "Development is a big part of the scheme and that development relationship is important," says Mark-Lawson. "It's not only the money, it's a relationship with financiers who may fund your feature."

A UK talent hothouse, alumni from the scheme include Andrea Arnold and Duane Hopkins. Projects backed this year include Simon Ellis' much-admired Soft.

COMPLETION FUND

Aimed at entrepreneurial film-makers who have been able to raise some funding, the UK Film Council's Completion Fund offers financing to complete shorts that have already been shot. The scheme also offers film-makers a platform to kick-start the exhibition of their film.

In 2007/2008 the funds available have risen from some $100,000 (£50,000) to $140,000 (£70,000) and the scheme now has two annual calls for projects. The first closes on December 14. The Completion Fund has supported 46 films over the last five years, including Daniel Mulloy's Antonio's Breakfast, Avie Luthra's Lucky and Dictynna Hood's The Other Man.