Over 15,000 new business start-ups year to date according to Bank of Ireland

- Real Estate businesses now lead in terms of new start-ups

Highlights:

Bank of Ireland Business Banking today (30 October 2007) issued its latest Business Start-up Barometer that tracks the number of business start-ups in Ireland. The Barometer shows that it has been another excellent year for start-up activity with 15,381 new companies established to date. This level of new business activity is slightly ahead of this time last year when we recorded 15,161 new business start-ups.

On a sectoral basis, the real estate sector has overtaken the construction and civil engineering industry as the most popular sector for business start-ups with an increase of 5% in new businesses (1,505). Despite there being 20% fewer companies in the sector, construction and civil engineering remains a close second with 1,482 companies formed this year. Consultancy is also a popular start up choice with 716 new businesses established in the first ten months of 2007.

Consistent with last year's results, Dublin remains the location of choice for Irish entrepreneurs with 5,602 (5,479 in Oct '06) businesses choosing to locate in the county. Cork has taken a higher share of new business this year with 1,274 companies while Galway (607) remains the third most popular county despite a 15% decrease in activity compared with 2006.

Finally, a recent report compiled by the Global Entrepreneurship Monitor indicates that 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.

Commenting on the figures released today, Dr Dan McLaughlin, Group Chief Economist, Bank of Ireland said: "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".

Damian Young, Head of Small Business, Bank of Ireland Business Banking said: "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. While the current market presents many challenges for the small business, such as rising energy costs and increased compliance, we continue to see a wider array of initiatives to support developing businesses. Such supports include the wider availability of finance, positive government initiatives, the expansive availability of training for SMEs and the continued efforts of agencies such as the City and County Enterprise Boards to nurture new business".

Top 15 locations for Business Start-Ups in Ireland

Ends

Contact:
Anne Mathews
Media Relations Manager
Group Corporate Communications
Ph. 00 353 1 604 3836 or 00 353 87 246 0358

About Bank of Ireland Business Banking
Bank of Ireland has the most comprehensive Business Start-Up package available to new businesses, featuring a business current account that has a range of banking services free of charge for two years, and a suite of internal and external offers specifically tailored for the new enterprise.

We provide over 100 loans daily to the SME sector and currently approve in excess of 87% of all small business lending applications, with half of all applications getting an immediate decision in the branch, and the other half within 24 hours. In addition, Bank of Ireland is the only financial institution that will lend up to €25,000 to these companies without security.