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Since the beginning of the year, there have been 1,600 new companies registered in Dublin 2 alone.
On Tuesday (29 October), new figures were release by business and credit risk analyst CRIF Vision-Net, which showed that Ireland’s economy continues to grow, despite ongoing uncertainty about the nation’s future beyond Brexit.
The research highlighted that there is an average of 55 companies formed every single day over the last nine months, with new company registrations up by 5,010 compared to this time last year. At least 1,600 of these start-ups have been founded in Dublin 2 alone, meaning that the postcode accounts for nearly 10pc of all new businesses registered in Ireland this year.
The total number of new start-ups in Ireland now stands at 17,160, according to the research. In Dublin, there are 7,127 new businesses. In Cork there are 1,498, 602 in Galway, 489 in Kildare and 514 in Limerick.
CRIF regional director for the UK and Ireland, Sara Costantini, said: “The continued growth of business start-ups in Ireland is an encouraging development, particularly against the current backdrop of global economic cautiousness.
“Ireland’s continued start-up growth is spurring increasing opportunity for entrepreneurship both within and outside the capital, and it is important that we protect this as trends suggest that businesses may approach some difficult times.”
Increase in insolvencies
While the number of start-ups is growing, there’s also an insolvency increase of almost 10pc compared to this time last year, totalling 1,519 insolvencies. This figure covers the number of businesses that filed for liquidation, examinership or receivership in the year to date.
Legal, accounting and business (300, or 26.4pc) and financial intermediation companies (276, or 24.3pc) experienced the largest increase in insolvencies this year, with wholesale and retail trade as well as construction also facing challenges.
Over the last year, Dublin was the most insolvent county with 804 registered. Around 450 of these insolvencies were filed from businesses located in Dublin 2.
Figures suggest that companies younger than six years old are most vulnerable, with 29pc of insolvencies occurring in this period. In a statement, CRIF Vision-Net said: “Year four proved to be the most challenging year within a business’s life cycle. It accounted for 7pc of all insolvencies in the year to date.”
Measures to tackle insolvencies
Christine Cullen, managing director of CRIF Vision-Net added: “Current environments are undoubtedly taking their toll on businesses as we experience an increase in insolvencies. Insolvencies are particularly acute amongst businesses six years old or less.
“Year on year, insolvencies amongst these early stage companies account for close to a third of all insolvencies. Budget 2020 included some positive measures for Irish SMEs toward navigating the uncertainty of Brexit, however the lack of new supports for entrepreneurship represented a missed opportunity.
Cullen concluded: “To this end, we must ask are Irish policymakers doing enough to support and incentivise these early stage businesses.”
