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UK start ups are growing both in number and in value for financial advisers. The number of people starting their own business grew by more than 10% in 2006, making this sector more important than ever for a growing number of IFAs.

Data released by Startupsplus, a direct marketing tool used by many IFAs, reveals that 151,393 new businesses started up in 2006, compared to 137,720 startups in 2005 - an increase of 10.3%.

This is well ahead of general growth rates in the economy, and indicates that as a nation, increasing numbers of us are taking the plunge to be our own boss.

Not only is the start up sector growing in size, but IFAs and other financial advisers are reporting increasing response rates from their promotions to new businesses.

Many have previously experienced fairly typical returns of around 1-2% from mailings to Startupsplus data.

For example Angela Lee, of St James's Place Partnership in Newcastle says "we average a 2% response rate", whilst Anthony Codner of Tailored Wealth Financial Planning reports that "we use the data for cold mailings and receive up to about 2% return on a mailing - which we feel is about right."

However some Financial Advisers are achieving much higher results. "Providing an introductory letter is sent out first, it would be unusual not to get one or two appointments from a list of 50 mailings, sometimes more" says David Dixon of Tax Assist Direct in Bishop's Stortford.

This is echoed by John Jordan, also of Tax Assist Direct but based in Burgess Hill. "I expect to obtain a 5% positive response of which I convert 50% into clients, which makes Selectabase very cost effective" he says.

The increasing returns on promotions to new businesses, seems to indicate a growing appetite amongst startups for independent financial advice.

Commenting on the reasons behind this, Steve Sellwood of Startupsplus feel that "starting a new business can be a testing time for most people, so perhaps they are also seeking some financial reassurance when they embark on their new venture."

Steve also thinks that start ups are more aware of the financial implications around starting a business. "New business owners seem much keener to address their pension provisions and insurance requirements these days, as well as potential sources of funding for their new business such as equity release".

And as for the most popular type of business to start, pubs topped the Startupsplus league table once again in 2006, closely followed by hairdressers, builders, and driving schools.

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