Surge in new business startups across Munster

Growth was typically found in counties with large urban populations, including Dublin and Cork both up 7%
Surge in new business startups across Munster

The number of startups in Limerick fell by 4% compared in the third quarter compared to the same period in 2020.

Limerick was the only county in Munster to record a decline in new company startups in the third quarter of this year.

New figures show that across the country, the first nine months of the year have seen a 28% increase in new start-ups, compared to the same period in 2020.

The data for the third quarter, from credit risk analyst firm CRIFVision-Net, suggests that the growth in start-ups was disproportionately concentrated in the first six months of the year, which saw a 42% increase in start-ups year-on-year. In contrast, Q3 recorded a more modest growth of four per cent versus the same period last year.

The data also reveals a 24% decrease in insolvencies in the year to date and a 48% decrease in the third quarter.

A total of 10 counties in Ireland experienced a year-on-year improvement in new company registrations for Q3 this year. This growth was typically found in counties with large urban populations, including Dublin (+7%), Cork (+7%), Waterford (+20%), Sligo (+19%) and Kilkenny (+4%). The other counties to record quarterly growth include Mayo (+13%), Clare (+11%), Carlow (+7%), Kerry (+6%) and Wexford (+5%).

Limerick (-4%) and Galway (-5%) both recorded a decrease in new start-ups.

Amongst the top-performing sectors that saw new startups over the past three months were leasing (+60%), utilities (+33%), manufacturing (+31%) and finance (+31%). Other sectors to see double-digit growth include wholesale and retail (+18%), transport and storage (+17%) and real estate (+16%).

Unsurprisingly, the hotel and restaurant sector continues to be the most at-risk sector, with approximately three in five companies (63%) in this space being categorised as ‘high-risk’. This represents a five per cent increase the third quarter of 2020. However, this figure still compares favourably to this time five years ago, when 66% of companies in the sector were categorised as ‘high risk’.

Other sectors to feature prominently in the high-risk category include computers (59%), construction (58%), transport and storage (54%) and wholesale and retail (54%).

"12 months ago, economic commentators and financial institutions were predicting an economic bounce in the second half of 2021," Christine Cullen, Managing Director of CRIFVision-net, said.

"A 28% growth in new start-ups certainly supports this narrative, however, it is interesting to note that this bounce in new start-ups was largely concentrated in the first half of the year, as opposed to the third quarter of the calendar year. This slowdown in start-up growth perhaps reflects a more stable operating environment and a return to business as usual for many industries."

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