New company levels at 7-year high

This year should see more than 17,000 new company formations; the largest single-year total since 2007.

Data released yesterday from credit and risk analysis firm Vision-net.ie showed 1,457 start-up firms were registered in November, marking an 11% increase on the same month last year.

According to Vision-net, the number of start-ups for 2014 totalled 15,686 as of November 20; 24 more than the 15,662 total for 2013 as a whole. Furthermore, the 2014 figure has since risen further to 16,337. Based on this year’s monthly averages, the total number of start-ups this year could go beyond 17,000, Vision-net feels, a figure not reached since 2007.

“Overtaking 2013’s start-up numbers before the end of the year demonstrates that Irish entrepreneurs are operating in an environment that is less hostile to risk-taking and this is vital for any sort of sustained economic recovery,” said the company’s managing director Christine Cullen. She said the rise in new company numbers marks “another step towards deeper economic recovery”.

A breakdown of the data shows that the three most popular industries for company start-ups last month were professional services, wholesale/retail and social/personal services.

Significantly however, real estate/property-related start-ups grew 70% compared to November of last year (126 companies, compared to 76), the area of transport and logistics saw a 69% annualised jump and start-up activity in the motor industry was up by 61% on a year-on-year basis.

Yesterday’s figures also noted a 19% year-on-year drop for November in the number of company insolvencies.

“An overall drop in insolvencies is also very encouraging news, especially in recession-hit sectors like construction. Equally, a rise in transport and logistics start-ups indicates an economy in motion, and a market more amenable to exports abroad,” said Ms Cullen.

While Dublin was predictably the main hot-spot for insolvency actions this year, its share jumped 10% to 65%. Galway accounted for 6.5% of insolvencies, while Limerick saw 5%. Leitrim, Sligo, Longford, Carlow, Roscommon, Monaghan, Offaly, Westmeath and Kilkenny saw no insolvencies in November.

Vision-net’s latest data shows the majority of industries had a drop in insolvencies last month. Construction cases showed the most significant decline, from 28 in November of last year to just 13 this year, marking a 54% annualised decline.

Furthermore, latest debt judgment figures for October show a total of €41.2m was awarded to creditors in 454 bad debt judgements.