More new firms as insolvency rates fall

This year has seen the largest number of new company establishments since 2007, with further falls in insolvency rates also noted.

New figures from business intelligence provider Vision-net show that 12,890 companies were established during the first nine months of 2014 — the highest rate for seven years and a 12% increase on the same period last year.

When all start-ups are measured — taking in companies and sole trader businesses — 32,277 have been established so far this year, 3% more than in the first nine months of 2013.

A breakdown of the figures shows a strong performance from the technology sector, with more than 1,000 tech start-ups established.

However, the amount of new companies formed in the construction and property sectors grew by almost 40%, and represented the most significant increase. And, while 1,132 companies have been declared insolvent to date this year, that figure is 4% down on the same period last year.

The motor trade experienced the most significant fall in company failures this year, with an annualised reduction of 36%; while instances of failures in construction and professional services fell by 14%.

Vision-net’s managing director, Christine Cullen, said that the September data provides “further encouraging evidence of Ireland getting back to business” and normality returning to the economy.

“Ireland’s business sector has experienced a hugely traumatic period over the last seven years, with business and consumer confidence falling to a low ebb,” said Ms Cullen.

“Yet our monthly data over the last couple of months strongly indicates the initial seeds of recovery have begun to take hold.”

Ms Cullen also said that an eight-fold increase in the number of Irish-based bankruptcies, in the past three years, suggests “we are starting to tackle the issue of debt in a mature and realistic way”.