According to The Sun, the currently untitled programme - created by the team at his Syco production company - will involve wannabes competing against each other to win a £1million grand prize.
However, although it shares similarities with Dragon's Den - which recently aired its eleventh series on BBC Two - a twist involves viewers put in control the contestant's fates.
Each week, businesspeople will be given two minutes to explain their proposals to a panel of three "benefactors" in the hope of securing a £100,000 investment.
The public will then vote on how much money they should recieve, up to a £70,000 limit - and if they secure at least a £35,000 backing from viewers, the benefactors will then be able to offer another £10,000 each.
The entrepreneurs who win the highest investment in each episode will then return for the series finale, when they'll go head-to-head for the £1million jackpot.
An insider told the newspaper: "How often have you watched Dragons’ Den and disagreed with the Dragons? This way, the power won’t lie with the business bigwigs but with the audience at home.
"After all, they are the people who will hopefully be buying whatever it is these entrepreneurs come up with — the show would do the market research."
The new format - which will be pitched to broadcasters including ITV in the near future - isn't Simon's first foray in to the business area.
The 54-year-old previously executive produced American Inventor, which ran between 2006 and 2007 on the ABC network in the US and starred Dragon's Den panellist Peter Jones.
However, while the media mogul's shows were once seen as unstoppable, he has recently suffered from a string of notable flops.
Ant and Dec-hosted gameshow Red or Black? was axed after two series, while cookery offering Food Glorious Food is unlikely to return after it failed to match the success of competitor The Great British Bake Off.
The X Factor USA was also recently cancelled by FOX after its ratings crashed from 12.59million to just 3.25million viewers.
Earlier this week Simon confirmed that Cheryl Cole will join him in returning to The X Factor UK later this year.