Start-up formation sees an 11% increase but commercial judgements also up

'Retail and hospitality continue to account for a significant share of insolvencies, underlining the impact of inflation on consumer-facing businesses,' CRIFVisionNet said

Credit risk analysis firm CRIFVisionNet has recorded an 11% increase in the number of new start-ups during the period July through September, compared to the same period last year, with sectors such as motor, IT, and agriculture seeing significant rises.

However, commercial judgments against firms have jumped by 30% in this three-month span, reaching a total of 1,428 cases, which the company said “underscores the ongoing challenges businesses face, particularly in the wake of recent tariffs”.

The overall value of these judgments has also risen, with €37.4m awarded to companies in the first nine months of the year.

In total, 23 counties recorded growth in start-ups during the third quarter, with Westmeath, Kildare, and Meath recording the largest increases at 26%, 26%, and 19%, respectively.

The sector with the largest growth was the motor trade sector, up 31%, followed by the IT sector at 28%, and agriculture with 23%.

CRIFVisionNet projects the number of start-ups for the year will break the 2021 peak and set a new record.

CRIFVisionNet managing director Christine Cullen said the increase in the number of start-ups was a “clear signal of entrepreneurial confidence across Ireland”, with companies emerging “not just in traditional sectors like agriculture and construction, but also in high-growth areas such as IT”.

“This demonstrates that, despite recent tariff-related pressures, Irish businesses remain ambitious and forward-looking,” she said.

CRIFVisionNet said the uptick in commercial judgements against companies “points to tighter credit conditions and reduced tolerance for late payments, with companies becoming more assertive in pursuing debt recovery”.

It suggests a clear shift away from forbearance as businesses take to the courts more frequently to resolve disputes.

The company said firms navigating imported goods, supply chain costs, or cross-border trading were experiencing heightened pressure, which is reflected in increased insolvency and debt enforcement activity.

It said this reinforced that timely payments and cashflow management remained critical to help companies navigate challenging economic conditions.

CRIFVisionNet said insolvencies had remained broadly consistent with 2024 levels overall, which is backed up by a recent report by professional services firm PwC, which forecasts 850 insolvencies by the end of the year — compared to the 868 last year.

“Retail and hospitality continue to account for a significant share of insolvencies, underlining the impact of inflation on consumer-facing businesses,” CRIFVisionNet said.

“Furthermore, with the median age of insolvent companies at 11 years, it is clear that many established businesses are now under severe strain. Rising operational costs, wage pressures linked to the cost-of-living crisis, and a tightening credit environment all remain significant headwinds.” 

Ms Cullen added the budget next week “will be crucial” to help mitigate the impact of tariffs.

“Measures supporting SMEs and start-ups such as tax credits, targeted grant schemes, or initiatives to mitigate the impact of tariffs could reinforce confidence and help sustain growth across sectors,” she said.