BES decision to hit start-ups

A DRAMATIC drop in the number of new start-up software companies is expected after the suspension of the Business Expansion Scheme (BES) and seed capital tax reliefs following the intervention of the European Commission.

The Irish Software Association said they expect the number of start-up software companies that will get off the ground this year to be close to half the number that commenced operations in 2003.

The EC forced the effective suspension of BES tax relief following budget changes introduced by Finance Minister Charlie McCreevy because of potential State aid breaches.