Business activity on increase here despite economic concerns

BUSINESS activity in Ireland has remained buoyant in the year to date despite concerns for the economy and falling house prices.

Start-ups were ahead just marginally at 15,381 against 15,161 new business start-ups recorded for the same period last year.

Property overtook the construction and civil engineering industry as the most popular sector for business.

It showed the increase in new companies formed up 5% to 1,505.

While it lost 20% of companies this year, construction and civil engineering was a close second with 1,482 companies formed.

Bank of Ireland business banking confirmed the figures in its latest business start-up barometer, which covers the 10 months to end October 2007.

Consultancy is also a popular start up choice with 716 new businesses established in the first 10 months of 2007.

Consistent with last year’s results, Dublin remains the location of choice for Irish entrepreneurs with 5,602 businesses choosing to locate in the county. The figure was 5,479 last year.

Cork has taken a higher share of new business this year with 1,274 companies.

Galway, with 607 companies, remains the third most popular county despite a 15% decrease in activity.

The Global Entrepreneurship Monitor in a new report recently said Ireland ranks third highest in the EU in terms of early stage entrepreneurial activity.

One in five Irish entrepreneurs have high growth aspirations for their business indicating a positive outlook for start up businesses in the coming year.

Interestingly, the research also revealed that the average start-up investment for new businesses is €40,000, which is primarily self-funded or funded by family members.

“It is interesting to note that the level of new business start-ups is still running ahead of last year, suggesting that confidence in the medium term outlook for the economy remains positive in the business sector, despite the consensus view that GDP growth will slow in the near term,” said Bank of Ireland chief economist Dr Dan McLaughlin.

“The findings of our start-up barometer highlight the fact that the environment for starting a business remains positive and opportunities continue to be plentiful.

“Clearly, new businesses continue to be a driving factor in our overall economic development and 2007 has so far seen a significant increase in the level of supports available for small business,” said Bank of Ireland’s head of small business Damian Young.