983 start-ups in August as growth continues in sectors hit by recession
In total, 983 companies were formed in August, with industries particularly hard hit by the recession contributing significantly to this figure.
The number of construction start-ups grew 30% on the same period last year, while more finance companies were also established with 53 companies started compared to 31 in August 2013, according to figures released by credit and business risk analyst Vision-net.ie.
Vision-net.ie managing director Christine Cullen said the figures were good news for industries hit particularly hard by the recession.
“The sectors which experienced a marked decline in business during the recession, particularly construction, real estate and manufacturing are beginning to show signs of recovery,” said Ms Cullen. A pick-up in these key sectors is good news and critical to Ireland’s continued journey back to growth.
“The increase in finance company start-ups is also encouraging and may be indicative of greater liquidity in our lending market, particularly in the mortgage market.”
The professional services, wholesale and retail, and IT industries were the three most prolific in August 2014, accounting for 46% of company start-ups.
Industries most impacted by the economic downturn showed continued signs of improvement, as the number of insolvencies declined. The manufacturing industry experienced 50% fewer insolvencies compared to August last year, while none were registered in the motor industry.
Total insolvencies across all sectors rose from 91 to 108, however — an increase of almost 20%.
The figures also reveal that in July, 390 bad debt judgements — worth €33m — were awarded against consumers and companies with 79% of these judgements (€30.7m) awarded against consumers.
The value of judgements rose by 22% despite the number of judgements awarded against companies and consumers falling by 19% year-on-year.
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