BoI reports business start-ups fall 14%

BUSINESS start-ups are down 14% over the last year as the economic slump continues to pose significant challenges for entrepreneurs.

The latest Bank of Ireland barometer showed 4,082 companies were formed in the three months to the end of June.

Unsurprisingly, Dublin was the top location with 1,777 new businesses, followed by Cork with 374 and Galway with 183.

However, the rate of decline is easing considering the number of start-ups in the first three months of the year at 4,109 was 22% less than the same period in 2007.

Increases in the number of new businesses in the second quarter of the year were seen in Louth, up 145%, Wicklow, up 65% and Meath, up 63%.

Clare is also attracting an increasing number of entrepreneurs, with the number of new businesses in the county growing by 73% to 90 in the quarter.

Head of small business with Bank of Ireland, Damian Young, said: “The findings of the barometer indicate that the recent economic climate has posed significant challenges to Irish start-up businesses this year.

“However, the continued diversification of start-ups into other sectors demonstrates the ability of Irish entrepreneurs to adapt to a changing economic environment and their agility in overcoming current challenges in the small business environment.

“While there has been a positive improvement in the number of start-ups this quarter, there continues to be significant challenges in the market place.

“Key to the success of these new businesses and indeed existing businesses will be their ability to adapt to the changing economic environment.

“History has shown the resilience of small businesses in similar challenging times and this is down to business owners being responsive to market changes,” he said.

Significant slowdown in the construction sector has resulted in a 45% drop in new businesses in this sector, but the number of companies set up within the software and consultancy sector has increased.