A £12 million sterling (€19 million) scheme to encourage people to set up business in Northern Ireland has been launched against the backdrop of a warning over future levels of inward investment.

Sir Reg Empey, the North's Minister for Enterprise, Trade and Investment, yesterday unveiled the Northern Ireland Business Start Up Programme, which hopes to encourage 6,000 start-ups over the next four years. Sir Reg believes the ambitious target of 1,500 new businesses each year, a rise of 25 per cent on last year's results, is achievable despite the current economic slowdown.

The launch of the scheme coincides with a report from the Confederation of British Industry which shows that confidence levels among small manufacturers in the UK has fallen to its lowest levels in 11 years. However, Sir Reg is confident that new entrepreneurs hold the key to economic growth in the North. "I believe that this target is an absolute essential requirement if the enterprise culture which does exist in Northern Ireland is to realise its potential.

"The Northern Ireland economy needs bright people with business ideas to help us fully re-establish the entrepreneurial spirit that, historically, was the hallmark of the region," Sir Reg said.

But he is uncertain if Northern Ireland can attract the same level of new investment from overseas companies as it has done in the past. Sir Reg told the Northern Ireland Assembly's Enterprise Committee yesterday that the economic climate and global downturn would not help the North to attract new inward investors.

He said although Government agencies would persevere in their efforts, no one should have high expectations. "That does not mean that we are giving up, it does not mean that we are not going to have successes, I think we will have successes, but they are not going to be on the same scale as last year," he added.