Regional entrepreneurs struggle in surge of startups

Regional entrepreneurs are at risk of being left behind as the number of startups this year looks set to outstrip a record-breaking 2015.

A lack of investment opportunities and poor infrastructure continues to limit the growth potential of regional economies as evidenced in the spread of new businesses established last year.

More than 60% of counties saw fewer than 400 new businesses set up shop last year while 8,670 were established in Dublin alone.

While it is no surprise that the capital accounts for the lion’s share of new businesses — followed by other major cities — 15 of the country’s 26 counties produced between 100 and 400 new firms.

Leitrim stood alone as the only county to produce fewer than 100.

Cork provided the second most fertile startup environment with 1,680 new businesses, followed by Galway (723), Kildare (605), and Limerick (617).

In total, a record 19,472 startups were established in 2015, beating the previous record of 19,300 in 2006.

The challenge for the next Government will be to protect the economic gains made over the past number of years and provide the conditions for business to prosper, according to Vision-net.ie managing director Christine Cullen, who said striking a balance is vital.

“While we are recovering, and recovering quickly, we have only just staggered back from the precipice of the biggest economic disaster in the history of the State,” said Ms Cullen. “If we grow too quickly, banks and the Government risk playing loose with credit and repeating the mistakes of the past; if we grow too slowly, we risk the embers of our recovery dying out.

“Business debt remains a live issue and a growth inhibitor. For the self-employed and entrepreneurs in particular, access to credit remains a thorny problem and in many cases kills off viable ideas before they are ever given a chance to flourish.

“Budget 2016 went some way to aiding startup growth in Ireland but a great deal remains to be done, particularly in terms of capital gains tax reductions and tax relief for the self-employed.”

Professional services dominated the startup scene accounting for more than a quarter of all new businesses in 2015, followed by wholesale and retail.

With more than 1,640 startups, activity in the construction sector grew by 24%.

The number of company closures fell 40% in 2015 with 7,188 companies dissolved.

Insolvencies also became less prevalent with the number of businesses in liquidated, in examinership, and in receivership falling.

However, 1,070 businesses failed last year.