November sees 21% increase in Irish startups

Close to 4,000 startups were established last month as improving economic conditions encouraged more entrepreneurs into the world of business.

In total, 3,978 new companies and businesses were formed during November, representing a 21% increase on the number set up during the same month last year and further illustrating improving business sentiment.

The figures compiled by Vision-net.ie offer further evidence that a “broad-based recovery” has taken hold, according to the business and credit risk analyst’s managing director, Christine Cullen.

“November’s figures repeat the consistently strong pattern of start-up growth which we have seen throughout the year, particularly construction and professional services.

"What is most encouraging is the significant increase in start-ups in other key growth areas of the economy such as retail and social and personal services.

“The growth indicates a greater willingness amongst consumers to spend. With small and family local businesses the lifeblood of the Irish economy, this is extremely positive,” Ms Cullen said.

Professional services accounted for almost a third of all new startups while the number of new social and personal startups grew by 55%.

The construction sector startup numbers increased by 30%.

Ms Cullen warned, however, that the debt burden faced by businesses and consumers “remains a live issue and barrier to economic growth” but welcomed the reduction of the term of bankruptcy to one year.