Number of new business start-ups down 9%

Around 13,000 businesses were started up last year - a 9% decrease from 2008, according to the latest figures from Bank of Ireland.

The survey which tracks the number of new businesses starting up in Ireland found almost half of all new start-ups were registered in Dublin.

Munster registered 21% while Connaught including Donegal, Monaghan, Cavan had 11% of these new ventures.

Nationwide, 13,327 new businesses formed last year or 36 per day, which showed a 9% decrease when compared to 14,753 new business formations in 2008.

The services sector saw the largest number of start-ups last year with 3,500 new businesses registered.

However, there was a decrease in the number of new business formed in the finance, insurance and real estate sectors with a combined drop of 37% when compared to 2008.

The research also found a spike in the number of dissolved companies - with figures jumping by almost 40% in a year.

"2009 was a challenging year with a fall off in new business start-ups, particularly in the first half of the year," said Damian Young, head of small business, Bank of Ireland Business Banking.

"This slowed significantly in the second half and resulting in a 9% year on year drop. As expected, the pick-up in the latter part of the year can be partly attributed to the lead in time for establishing new businesses, with many people opting for entrepreneurship as an employment option.

"2010 should be viewed with some optimism. The faster pace of recovery in Europe, the US and other countries offers growth opportunities for export orientated start-ups. Indeed, the stabilisation of Ireland's finances should help to instil more consumer confidence and business activity in 2010.

"In addition, the government’s extension to its corporation tax exemption for start-ups makes 2010 an attractive year to start a business.

"Going into 2010, there are some signs of optimism. Many businesses have taken the necessary action to reduce costs and realign their business models. Company dissolutions, although at the highest level in 2009 are declining quarter by quarter. The outlook for 2010 is that overall start-up activity will remain at between 13,000 and 15,000 new companies being formed this year."