Every day during November some 147 start-ups were born in Ireland, according to research from credit risk analyst Vision-net.
This totalled 3,978 during the month of November 2015.
According to Vision-net.ie, of this number, 2,561 were new businesses (sole traders) and 1,417 were new companies (legal entities). In total, this represents a 21pc increase compared to the same period in 2014.
Dublin, Cork and Kildare were the three most popular locations for start-ups. Kildare saw a significant 39pc year-on-year rise in start-ups, from 44 to 61.
The fourth and fifth most popular locations, Galway and Meath, experienced small declines in start-up numbers, from 54 to 50 (-7pc) and from 53 to 40 (-24.5pc), respectively.
‘The growth in start-ups in these sectors points to expected increases in disposable income in the period ahead and a greater willingness amongst consumers to spend’
– CHRISTINE CULLEN, VISION-NET
Last month, professional services, social and personal services, and wholesale and retail were the three most popular sectors for new start-ups.
Professional services accounted for almost 30pc of all new start-ups in the country. Numbers in the sector rose 17.5pc year-on-year, from 361 to 424. Social and personal services start-ups increased by 55pc, from 115 to 178, while wholesale and retail increased by 6pc, from 132 to 140.
Continuing the sector’s strong recovery, construction experienced another positive month, with start-up numbers increasing by 30pc year-on-year, from 86 to 112. Education start-ups increased 54pc, from 13 to 20, and utilities start-ups increased 280pc, from 5 to 19.
While businesses were starting up, others were struggling, with 276 corporate and consumer judgments awarded to creditors for non-payment of debts, totalling €16.3m.
€5.3m of the judgments were awarded to the Revenue Commissioner in 153 judgments; the banks received €7.6m, or 48pc, of the total value of judgments in 20 separate awards.
Rise of start-ups connected to increase in disposable incomes
“November’s figures repeats the consistently strong pattern of start-up growth which we have seen throughout the year, particularly construction and professional services,” explained Christine Cullen, managing director of Vision-net.ie.
“What is most encouraging is the significant increase in start-ups in other key growth areas of the economy such as retail and social and personal services.
“The growth in start-ups in these sectors points to expected increases in disposable income in the period ahead and a greater willingness amongst consumers to spend. With small and family local businesses the lifeblood of the Irish economy, this is extremely positive.
“Our figures also show that the debt burden faced by businesses and consumers remains a live issue and barrier to economic growth. Today’s expected Government decision to make bankruptcy more attractive to those with unsustainable debts may provide the necessary lifeline to get these individuals and struggling entrepreneurs back on track,” added Cullen.
Start-up image via Shutterstock