Start-ups in the Irish construction and property sector plunged by approximately 25% last year as a result of changes in the economic climate.

According to the latest Bank of Ireland start-up barometer construction and property start-ups dropped to 1,714 and 1,804, however they remained the most popular start-up business sectors.

There was a surge in restaurants start-ups due to increase spenditure in food but overall the number of new start-ups fell by 2% to 18,740 last year.

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Bank of Ireland chief economist Dr Dan McLaughlin said: "The number of start-ups has held up well despite the reported falls in industry and consumer confidence, showing that new businesses are prepared to look through any near-term cyclical slowdown and to focus on the medium-term outlook."

Most start-ups were in Dublin; a total 6,996 firms opened that's ten less than in 2006. The main increases in start-up activity were 37% in Louth and 10% in Kildare. Galway and Limerick both experienced a decline in entrepreneurial activity of 15% and 11% respectively.

Damian Young, Head of Small Business Banking with Bank of Ireland noted that although the environment for starting a business remained relatively stable in 2007, the current market presents "many challenges" for new businesses in Ireland. He said the key for Irish businesses in 2008 will be their ability to focus on their business goals and to be adaptable to environmental changes.

(GK)