A fund of €230,000 will be made available to entrepreneurs and start-up companies under a competition launched yesterday by InterTradeIreland.

The All-Island Seedcorn Competition has been designed to highlight the funding issues that are faced by small and medium-sized businesses.

The prize fund available under the scheme will be allocated on the basis of business plans submitted by those involved in start-up enterprises.

InterTradeIreland chairman, Dr Martin Naughton of Glen Dimplex, yesterday described entrepreneurs as "an essential element of the modern economy".

He warned that the country as a whole would lose out if funding could not be provided to allow such individuals to turn their business plans into reality.

He said the Seedcorn competition aimed to encourage more entrepreneurs to examine the benefits of private funding.

The Seedcorn contest is open to any individual or group based either in the Republic or the North as long as they have not been in business for more than three years at the end of September this year.

The competition will draw finalists from seven regions, each of whom will be awarded €20,000. These finalists will then compete for the overall prize of €100,000.

A further prize of €10,000 will be on offer to companies that have emerged from ventures such as university spin-outs.

InterTradeIreland is an all-Ireland body that promotes cross-border trade and business development.