The figure hit 370 in the year, compared with 345 in 2006, according to statistics released by consultancy firm, FGS.
In the six months ending June 30 last year there were 167 failures as opposed to 203 in the six months ending 31 December, representing an increase of 21.5% on the previous six months.
The construction sector took a big hit last year with 130 or 35% of all failures occurring in this sector.
The report said: “The reduction in house prices, significant decline in the numbers of new units being built, uncertainty regarding the availability of credit for small to medium type developers and the likely decrease in the number of people working in the sector all indicate that much uncertainty is likely to prevail in the short term.”
There was also a high level of failure in the hospitality sector such as pubs, restaurants and suppliers to the industry where 47 collapses occurred, or 13% of the total.
Looking at the industry sectors over a four year period the report notes that there have been significant decreases in the number of failures in the information technology sector from 56 in 2004 to 23 in 2007, or a 59% decrease over the period.
“It would appear that owners and promoters of businesses within the sector have learned the lessons from the exuberant expenditure which immediately predated the dot com bubble burst in 2000,” it noted.
Dublin accounted for the majority of failures last year, with 173 or 47% of all failures taking place in the Capital.
This is in contrast to 160 or 46% in 2006.