Business failures up by 26% as start-ups down

THE number of businesses that have failed so far this year is up 26% compared with last year.

Also there has been a 20% drop in the number of companies formed.

The latest Bank of Ireland business start-up barometer shows 3,391 new limited companies were formed in the third quarter of this year and 11,591 to date this year.

Although Dublin was the prime location for business start-ups it also suffered the biggest drop.

Cork and Kildare also showed significant reductions in the number of businesses being established with formations down 23% and 25% in each county respectively.

Unsurprisingly, the construction sector has been the worst hit: 223 construction firms shut down at the end of quarter three this year, compared with 126 companies at the end of the same period last year — an increase of 76%.

In the services sector, 167 companies were unsuccessful at the end of quarter three this year, against 102 companies at the end of quarter three last year — a 63% increase.

Head of small business with Bank of Ireland, Damian Young said: “The figures show an expected fall in the number of business start-ups and the rise in business failures over the year.

“However, we continue to see good activity in the market and adjusting for the fall in construction related businesses, new business start-ups are in fact down less than 10%.”