Business activity picks up as level of start-ups increases by 2.6%, says BoI

THERE was a 2.6% increase in the level of new business start-ups in the third quarter of the year — compared to the second quarter — according to figures from Bank of Ireland.

According to the bank’s latest quarterly Business Start-Up Baromoeter 3,343 new company registrations were lodged between the start of July and the end of September.

A total of 3,262 registrations were evident in the previous quarter. However, the number of new company registrations in the year to date is 9,974 — which is a drop of 14% on the same timeframe last year, when the total was 11,614 new companies.

The services industry was the main driver of growth in the third quarter, representing an 11% quarter-by- quarter growth in registrations. In all, 1,092 new company registrations related to the services sector in the third quarter — this sector’s best performing period for start-ups since the second quarter of last year.

According to Bank of Ireland’s head of small business Damian Young there are signs of recovery in the marketplace but challenges remain.

“Small and medium enterprises continue to struggle, and face significant challenges in today’s market environment. However, as demonstrated in the services sector, there is some evidence business opportunities are beginning to re-emerge. Well managed, viable, and innovative businesses are more than ever critical for the success of any new or existing start-up business today,” he said.

The last quarter continued the pattern of the construction industry seeing the biggest fall in new business start-up activity, with an 11% decline on the previous quarter.

Dublin continued to show the highest number of new registrations — the capital representing nearly 47% of the quarterly total; with Laois showing the best improvement.

A further positive note was the fact that there was a marked decline in the number of dissolved companies — with 2,847 subjects, 317 or 11% less than the previous three-month period.