Immigrants boosting rise in business start-ups

More than 10,000 companies have been set up in the first six months of the year, it was revealed today.

And the latest figures from Bank of Ireland (BoI) show about 1,000 of these new firms are being run by foreign entrepreneurs.

Cities are the most popular location with half of all new businesses based in Dublin, Cork, Galway, Limerick, Kilkenny and Waterford.

Damian Young, BoI head of small business, said up to 10% of new companies are set up by immigrants.

“Up to 45,000 migrants come to Ireland each year, many of whom will consider starting their own business,” he said.

“We have found that between 6%-10% of our business start-up customers are now from outside Ireland and this wave of new entrepreneurs is helping to boost the start-up figures in 2007.”

Some 10,041 firms have been formed since the start of the year, a slight increase on last year.

Bank chiefs said it is an impressive rate demonstrating the growing importance of entrepreneurs to the Irish economy.

Dr Dan McLaughlin, Bank of Ireland group chief economist, said: “It is encouraging to see the level of business start-ups being maintained in 2007, which is supportive of GDP growth staying at the buoyant levels of recent years.”

A breakdown of the start-ups showed construction, 1,059, and property management, 1028, are the most popular.

Elsewhere 542 IT companies were set up; 459 business and management consultancies; and 298 financial companies.

Minister for Immigration Connor Linehan says it would be a shame for Ireland to lose its reputation as a welcoming country because of a lack of integration.