Survey shows fall in business start-ups

Bank of Ireland's new business tracker shows a 3.3% fall in the number of new firms registered in the second quarter of 2009 compared the first quarter.

The tracker reveals 3,258 new companies registered in Q2 2009, with 3,369 registering in the previous quarter.

Dublin shows the most significant green shoots registering almost 45% of the quarterly total with 1,455 new company registrations, compared to 1,433 in Q1 2009.

This is an increase of 22 new companies established in the capital compared with the last quarter.

However, this figure is still down from the same period last year when 1,775 were formed.

On a regional level, Tipperary showed the most marked improvement with 97 new companies being formed in Q2, 2009, as compared to 76 formations in Q1 this year.

It also showed a noticeable increase in new business start-ups from the same period last year when 72 new companies were formed.

However, there was good news as the tracker shows a 6% decrease in company dissolutions nationally in Q2 2009 (3,243), compared to Q1 of this year (3,451), with only six counties showing an increase in company dissolutions

The total number of dissolved companies for Q2 2009 was 3,243, down 6% or by 208 on Q1 from a figure of 3,451.

However the number of dissolved companies year to date is 6,694, up by 30% from 5,131 companies dissolved during the same periods (Q1 and Q2 2008) last year.

The total number of dissolved companies in Q2 2008 was 2,263.

There was a national decrease in company dissolutions which fell by 6% in Q2 2009, compared to Q1 of this year, which was reflected across the country, with only six counties showing an increase in company dissolutions in this quarter. Galway, Monaghan, Roscommon and Westmeath featured the highest number of company dissolutions.

Only three counties featured a decrease in dissolutions when comparing Q2 2009 and Q2 2008. These are Longford, Waterford and Carlow.

The Manufacturing sector showed the greatest percentage increase in the number of new business start-ups during the period, with a 23% increase in new businesses registrations, or 249 new companies being formed, compared with 201 in Q1 2009.

This figure falls short of the number of business established during the same period last year, when 262 companies were formed in the sector.

The Construction industry continues to see the greatest fall in new business activity, with a 14% decrease in business start up activity in Q2, compared with Q1.

However there was a 16% drop in construction company dissolutions in Q2 compared with Q1, though this figure still represents 502 companies.