Earlier, the government announced 21 locations for enterprise zones in England in an effort to boost economic growth.
Gloucestershire's bid focused on Gloucester and Cinderford.
But Communities Minister Bob Neill said the county could still benefit from other job-creating projects.
"It's no disgrace to Gloucestershire at all, they did hard work, I know that," he said.
"And what I'd say to them is do not be discouraged.
"We are working with local enterprise partnerships and local councils beyond the enterprise zone projects, for example giving councils the ability to discount business rates to attract businesses into the area, giving the ability to set up simplified planning regimes."
Plans for 21 nationwide zones were first set out in March's Budget.
Zones have been confirmed for sites in Cheshire, Cornwall, Gosport, Norfolk, Hereford, Kent and Oxfordshire.
Other locations include Essex, Suffolk, Northampton, Leicestershire, Cambridgeshire and the Humber Estuary.
Ministers said 30,000 new jobs would be created by 2015 by giving cheaper business rates, super-fast broadband and lower levels of planning control.

A large number of rail operators are not running any services, with only a limited service operating on others.
Labour said that in opposition the Tories had "attacked the Boxing Day rail shutdown", but done nothing about it while in government.
The Department for Transport said it was for train operators to decide on the level of service on specific days.
Rail operators that are not running services on Boxing Day include Arriva Trains Wales, c2C, CrossCountry, East Midlands, Grand Central, Great Northern, Great Western, London Midland, Northern Rail, South West, Thameslink, TransPennine Express and Virgin.
The Christmas period also sees 200 sets of rail engineering works being carried out, with London, Manchester and Cardiff among the cities hit, and Heathrow Express is also suspended for six days.
Shadow transport secretary Andy McDonald said: "Tory ministers' handling of the Boxing Day rail standstill is making it much harder for families and friends to visit one another this Christmas break.
"In opposition the Tories attacked the Boxing Day rail shutdown. They've now had more than six years to do something about it but haven't.
"Their lack of action, even despite the chaos of previous years, gives the impression they don't really care about it at all. The Tory hypocrisy on this issue is astounding."
A Department for Transport spokeswoman said: "Deciding the level of service on specific days is a matter for train operators.
"But we know some passengers want to travel on Boxing Day, and that's why we have worked with the rail industry to ensure there are limited services on some franchises on that day, and that the scope for Boxing Day services is considered when we are planning future franchises.
"Network Rail and train companies have ensured that a large part of the railway will remain open over the Christmas/New Year period and alternative routes are provided where the lines are closed for essential engineering work, and that these are communicated properly to the public."
Travellers are also being urged to check weather conditions before setting off as Storm Conor descends on northern parts of the UK.
A yellow "be aware" warning has been issued for western and northern Scotland, Northern Ireland and the north of England.
After a lull following disruption caused by Storm Barbara, high winds and snow are expected to sweep across parts of northern Scotland, peaking on Boxing Day when gusts could reach 90mph.

There have been concerns about the viability of the airport after Ryanair dropped a number of air services.
First Minister Arlene Foster said the money would allow the airport to plan for the future.
Deputy First Minister Martin McGuinness said the £7m investment was vital because "connectivity is a pre-requisite for economic development".
City of Derry Airport is owned by Derry City and Strabane Council.
The business is currently running at a loss of more than £2m a year and its chairman does not expect it to break even until 2021.
The Northern Ireland Executive has now stepped in to help, but European state aid rules mean the airport cannot just be handed money to cover its operating costs.
Instead, £2.5m will be used for route development, which means attracting new airlines.
A further £4.5m will be used to invest in the airport's infrastructure.
The deputy first minister said discussions are at an advanced stage with another airline, which could pick up some of the lost Ryanair services.
Gloucestershire's failure to secure an "enterprise zone" for the county is not a reflection on local businesses, the government has said.
[NEXT_CONCEPT]
Labour has accused the Conservatives of "hypocrisy" over the Boxing Day "standstill" on the rail network.
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Details of a £7m funding package to support City of Derry airport have been revealed by Stormont ministers.