The first month of the year saw a 16% increase in new companies being formed in Ireland, with a total of 3,713 — or an average of 132 per day — being established.
Furthermore, the fresh data for January, published today by leading business and credit risk analyst Vision-net.ie, shows that 10% of the new firms were established in the Cork area.
The most popular sector for start-ups last month was that of professional services, which accounted for nearly 26% of new companies in January. The construction sector saw a 33% annualised rise in new firms in the month, with 118 new names emerging. The real estate/property sector saw 84 new company formations in the last four weeks, compared to 41 in the same month last year.
Recent data, according to Vision-Net’s managing director Christine Cullen, shows that 2014 saw the highest levels of start-ups being established in this country for seven years, and the signs suggest that 2015 will beat all projections if January’s trends are an accurate barometer.
“Overall last year company, start-ups were up 14% year on year but with a strong start in January it is reasonable to assume that this will be one of the strongest years in recent decades for start-ups,” said Ms Cullen. “The sectors which experienced a marked decline in business during the last few years, particularly construction and real estate, are showing strong signs of activity and recovery. A pick-up in these key sectors is good news for the wider economy and critical to Ireland’s continued journey back to growth.”
With the number of company insolvencies also falling in January — down 38% on a year-on-year basis, with 57 firms failing — Ms Cullen also noted that the overall success rate of business start-ups seems to be improving.
“In 2011, Vision-Net.ie carried out research which showed that one in three companies was not making it past the first three years in business,” she said. “We carried out the same research in 2014 and it had dropped to 1 in 4 which suggests a less hostile and better trading environment to look forward to in 2015.
“It is clear that there is a need for continued support and mentoring of these new companies to further reduce that figure and help start-ups to become profitable entities who hire and spend in the economy.”
In terms of start-ups, Dublin accounted for 45% last month, with Cork accounting for 10%. Galway, Kildare, and Meath between them accounted for a further 12%. The number of start-ups in Galway, alone, doubled to 60 compared to the same month last year.
Meanwhile, Dublin accounted for just over one in five insolvencies during the month, an almost 27% annualised decline.
Eight counties — Cavan, Kilkenny, Laois, Longford, Monaghan, Offaly, Sligo, and Tipperary — were not affected by insolvency in January. Cork saw a greater than 10% annualised increase in cases, and accounted for 16% of company failures last month.
Professional Services was the industry most affected by insolvencies this January, representing almost 25% of all insolvencies recorded during the month, with 14 cases. Nine insolvencies were recorded in the Construction sector.
There was further good news for the real estate sector after a positive 2014 with an 80% drop in insolvencies.
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