47pc increase in the number of Irish tech start-ups

2 May 2014

A 47pc increase in the number of Irish tech company start-ups – that’s 122 new companies – was recorded in April 2014, compared with the same time last year when there were 83 new tech start-ups.

According to figures compiled by business and credit risk analyst firm Vision-net.ie, the increase indicated positive growth in Ireland’s indigenous tech sector.

“Ireland is the second largest exporter of ICT services in the world, an industry that contributes €72bn to the national economy annually,” said Christine Cullen, managing director of Vision-net.ie.

“Currently, however, only 3pc of that revenue is generated by Irish companies.

“It is certainly heartening, then, to see Irish tech entrepreneurs committed to investing their skills and ideas here, increasing the share of industry revenue made by indigenous businesses. This will only serve to further cement our reputation as a global leader in IT and create more relevant jobs at home,” Cullen added.

New company start-ups by sector 2014

The IT and tech sector was the fourth most popular industry for new company start-ups in Ireland, following professional services; social and personal services; and wholesale and retail. Together, these four industries accounted for more than half (52pc) of all new company start-ups.

There was also a 24.5pc increase in the number of company incorporations, with 1,504 in April this year as opposed to 1,208 in the same month in 2013.

In March 2014, 353 judgments worth €15.7m were awarded to creditors for non-payment of debts.

Some 254 of these, worth €12.8m, were awarded against consumers, with an average of €50,307 per judgment. This figure represents a 17pc drop in the number of consumer judgments on the same month of last year.

Wholesale and retail insolvencies accounted for a fifth of industrial insolvencies in April this year, a rise of 24pc year-on-year. The second and third most insolvent industries in April were professional services and real estate, accounting for 16.6pc and 13.8pc, respectively.

The construction sector showed the most improvement in this regard, with a 41.4pc reduction in insolvencies on the same month last year.

More than half (53.1pc) of insolvencies were recorded in Dublin, followed by 5.5pc in both Meath and Kildare. No insolvencies were recorded in Laois, Sligo, Offaly, Monaghan or Donegal.

Figures indicate that 66pc of hotels and restaurants are at “high risk” of collapse. Furthermore, 61pc of construction and 53pc of wholesale and retail businesses face similar high risk.

Starter image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years