Number of start-ups established last year surpassed 22,500

Majority of new companies established in Ireland last year were outside of the major urban centres, new data shows

Offaly recorded the largest increase in start-ups in 2023 — up 28% to 224 compared to 2022.  

The number of start-ups established in Ireland during 2023 grew to over 22,500 as more and more businesses look to set up outside of the major urban centres.

According to new data from CRIF Vision-net, one of Ireland’s largest providers of credit information on businesses, 22,581 new company start-ups were established in 2023, an increase of 944 compared to 2022. This is the highest number of start-ups recorded since 2017.

The majority of new companies established in Ireland last year were outside of the major urban centres, with 19 of 26 counties recording an increase in new companies. Offaly experienced the largest percentage increase, recording a total of 224 new companies in 2023, up 28% from the year prior.

This was followed by Mayo, up 19%, Waterford, up 15%, and Galway, up 12%.

CRIF Vision-net managing director Christine Cullen said there had been a growing trend of start-ups establishing their companies outside the major urban centres which “could be influenced by the ongoing housing crisis, coupled with low unemployment rates”.

Countries that experienced a decrease included Leitrim, down 9% to 111, and Longford, down 7%.

Of the 26 counties in the Republic of Ireland, a total of 19 recorded an increase in new company start-ups in 2023. 

Unsurprisingly, Dublin saw the highest number of start-ups last year, with 9,883.

The motoring sector saw the largest increase in start-ups, up 23%, followed by fishing, up 17%, storage and communication, up 10%, computers also up 10%, all compared to 2022.

However, while there has been a significant uptick in the number of businesses started, the data also reveals the challenges they are set to face.

The company said 33% of new companies could close within the first four years of operation, with heightened vulnerability observed in the third and fourth years. The data also shows 25% of all insolvencies involve companies established in the last four years.

Ms Cullen said this underscored the need for “increased local and Government support, acknowledging challenges business owners face such as high energy, rental costs and the continued uncertainty caused by inflation”.

She added there was a need for enhanced assistance for companies during the first five years of operation.

“If we can proactively address these challenges, the Irish Government can create an environment that nurtures the growth and sustainability of emerging businesses leading to a more robust and resilient economy,” she said.