Decline in firm formations slows

THE fall in the number of new company formations slowed slightly in the last quarter compared with the previous three months.

Figures released by ICC Formations show there was a 20% drop in the number of business start-ups in the last three months compared with a 22.5% drop in the first quarter.

The telecommunications and electricity, gas and water sectors bucked the trend showing an increase in company formations.

The housing sector was hardest hit with start-ups in the real estate and renting sectors falling 57.5% and by 35.5% in the construction sector.

In these sectors 402 fewer companies were formed in quarter two this year compared to the same period last year.

Overall there were 826 fewer companies formed in Ireland in the period compared with last year.

The biggest drop was in numbers was in Leinster with 517 fewer companies formed, with Dublin alone accounting for 326 of these.

There was a drop of 17% in Munster and 24% in Connacht, while Ulster saw the biggest percentage drop of 40.9%.

Head of professional services at ICC Formations, Jon Rock said: “It was not all bad news, as some counties did see an increase in the number of companies formed.

“Tipperary saw an increase of 32.5% with 25 more companies formed here than in quarter two last year. Wicklow also had a small increase of 8.5%, while the figures for Kilkenny remained fairly static.”

Figures recently found that for the first time since 2003 more businesses failed than were created in a six-month period.

Research conducted by services firm, Experian shows 6,691 companies collapsed in the first six months of this year.