Infrastructure works on the site i off the A52 to the west of the town are set to begin in August.
They will see the construction of a new highway, along with drainage and utility services between Holly Road and Hassall Road
Coun Colin Davie, executive councillor for economy at Lincolnshire County Council, said: "The expansion of the business park is a big confidence boost for our coast. Diversifying the economy in the area will provide more year round employment as well as allowing local businesses to expand or re-locate.
"The site will be suitable for a wide range of business needs and usage, including purpose-built units for many different companies, and will encourage future investment. By boosting investment and creating jobs, there will be benefits throughout the wider area."
The new highway will join up two parts of the existing industrial estate, to expand the site onto the surrounding land, and these works are due to be complete in Spring 2021.
The whole scheme is jointly funded by Lincolnshire County Council and a £1.279million Single Local Growth Fund grant from the Greater Lincolnshire Local Enterprise Partnership (GLLEP).
Pat Doody, chair of the Greater Lincolnshire Local Enterprise Partnership, said: "The Greater Lincolnshire LEP is pleased to be involved in this strategically important scheme which will support the future prosperity of our seaside towns. It will give local firms the room they need to grow and provide a place where they can thrive and attract greater investment into the coastal economy."
The infrastructure work costing £1.5m, is being carried out by contractors G F Tomlinson.
Minister for Regional Growth and Local Government Simon Clarke MP said: “I am delighted that construction is getting going on this important expansion which will allow local businesses to grow and relocate, bringing investment and jobs to Skegness.
“This Government is supporting the project through over £1.2million in funding as part of our ongoing commitment to investing in our communities and levelling up every part of the country.”