Soaring inflation appears to have impacted individuals wishing to begin their own business venture, with the number of new company start-ups falling 12% in the first three months of the year.
New data shows urban hubs such as Dublin, Cork, Galway, and Limerick all recorded declining numbers in company start-ups when compared with the same period in 2021.
The figures from CRIFVision-net show that growth was seen in some sectors weakened through Covid-19 public health restrictions, with hotels and restaurants rebounding by 14% and construction by 5% during the period.
A rise of 26% in the number of green start-ups in areas such as recycling, solar, and wind energy was also recorded, fuelled by the drive to meet sustainability targets.
However, the wholesale and retail trade saw a 43% decline in start-ups, followed by manufacturing with a 32% fall and real estate down 4%.
Although Dublin accounted for the largest number of new start-ups nationwide in the first quarter, recording a total of 2,389 registrations, the number was still a 17% year-on-year decrease.
Cork saw a total of 602 new start-ups (-5%), Galway recorded 206 (-18%), and Limerick recorded 185 (-3%).
Despite the overall fall, rural counties such as Leitrim, Longford, Laois, and Wexford all saw increases in the number of start-ups compared to 2021.
Christine Cullen, managing director of CRIFVision-net, said growth in rural locations may suggest a shift in terms of the public’s expectations for different lifestyle choices, seen through a gradual move away from the big cities. She said: "This could be a result of a shift to hybrid working and a hybrid working environment, as well as the housing shortage and high property and rent prices in Ireland’s urban centres.
“Some of the uncertainty is offset by the rebound felt in the hospitality and construction sectors, two of the industries that suffered most due to the pandemic health restrictions.
"Some might assume that people would not have the disposable income to spend in our bars, hotels, and restaurants, but 14% growth in hospitality suggests optimism in the sector and a strong outlook despite all the economic tailwinds.”