Start-up figure hits seven-year high

More than 15,000 companies have been formed in Ireland already this year with levels already approaching the full-year total for 2013.

Figures released by company risk specialists www.Vision-net.ie  show more companies have been incorporated in the year to date than at any stage since 2007.

Every month this year has seen more company start-ups than the corresponding one in 2013 — with just 600 fewer companies now established this year than in 2013.

At the same period in 2013, figures show fewer than 13,500 companies were established — 13% fewer than this year’s running total.

The improving stream of economic data emerging over the last number of months has increased confidence among business owners and entrepreneurs as the country begins to emerge from the recession that has devastated industry for the last six years.

A recovering construction sector, expanding SME sector and improving consumer sentiment are helping make Ireland the eurozone’s fastest growing economy with forecasted GDP growth of 4.6% this year, all of which has helped an increasing number of entrepreneurs establish businesses here.

Vision-net predicts that if start-ups for the last two months of this year remain in line with the rate of incorporation to date, more than 17,000 new companies will have been established in 2014 — the highest number since 2007.

Since then, the number of company start-ups has not exceeded 15,700 any year.

The latest Business Barometer report also reveals that the professional services industry is the most popular for new companies — accounting for a quarter of all those established this year.

Wholesale and retail; and social and personal services are the two next most popular sectors — representing 10.5% and 9% of start-ups.

The large number of new businesses has also contributed to the sharp rise in the number of people becoming company directors for the first time with nearly 25,000 such individuals this year.

Elsewhere in the report, the number of insolvencies recorded in 2014 is listed at 1,325 while a total of €303.2m worth of consumer and commercial judgments have been awarded which works out as an average of €80,560.

Dublin-based warehousing and retail distribution company Aeon Solutions had the greatest award made against it of €240,000 — more than three times the next biggest judgment this year.

Last year, 5,481 judgments were awarded — 32% of which were commercial and which totalled €71.5m while the other 68%, awarded against consumers, amounted to €327m.