Start ups down 9% during 2009

NEW figures show 13,327 new business start ups formed in 2009. That represents 36 a day, but the amount was down 9% on 2008.

Almost half of all new businesses registered in Dublin, and the figure was up by 16% to 6,129

The level of companies dissolved rose by 16% to 12,000, according to the Bank of Ireland Business Banking.

The services sector saw the largest number of start-ups in 2009, with 3,500 new businesses registered.

Given the decline in the commercial and residential property markets, the number of new business formed in associated industry sectors such as finance, insurance and real estate declined.

Dublin continues to record the highest number of new start-ups, registering 46% of the annual total. The regional breakdown is as follows:

- Dublin: 46%, or 6,129

- Leinster region excluding Dublin: 22%, or 2,933.

- Munster: 21%, or 2,767.

- Connaught including Donegal, Monaghan and Cavan: 11%, or 1,519

Last year ended the dramatic decline in new business activity witnessed in 2008 ended with “a stabilisation of sorts in the year on year percentage differences across all sectors”.

Damian Young, head of small business at the bank, said 2009 was “challenging” as the first half continued to suffer a decline in activity.

As a result of a significant second half slowdown the overall picture has improved significantly, he said.

The pick-up in the latter part of the year can be partly attributed to the lead in time for establishing new businesses, with many people opting for entrepreneurship as an employment option while 2010 offers a more optimistic outlook, he said.

“The faster pace of recovery in Europe, the US and other countries offers growth opportunities for export orientated start-ups. The stabilisation of Ireland’s finances should also help to instil more consumer confidence and create more business activity in 2010.

The government’s extension of its corporation tax exemption for start-ups should makes 2010 an attractive year to start a business, he said.

“Going into 2010, there are some signs of optimism. Many businesses have taken the necessary action to reduce costs and realign their business models,” he said.