Decrease in number of new start-ups in last quarter: BOI
Bank of Ireland today issued its latest Business Start-up Barometer that tracks the number of new enterprises starting in Ireland.
As further evidence of the slowdown in the Irish economy, the barometer shows a decrease in the number of new businesses established in the last quarter.
A total of 3,391 new businesses were established in Q3, a decrease of 17% from Q2 (4,081 companies). The number of companies established to date this year (11,591) is 20% lower than the number of companies formed in the same period last year (14,487).
The decline in the number of new start-ups this quarter is noted across all sectors. Year to date, the construction and finance / real estate sectors have been worst hit, recording declines of 42% (from 2,267 at end of Q3 in 2007 to 1,322 at end of Q3 this year) and - 40% (from 2,488 at end of Q3 in 2007 to 1,491 at end of Q3 this year) respectively.
On a more positive note, there has been an overall decrease in the number of company failures recorded this quarter. While still a significant number of companies failed in Q3 of this year (469 companies in total), this figure was 553 in Q2, a decrease of 16%.
The news is not so positive if we look at a year on year comparison. A total of 1,491 companies have failed to date this year (to the end of Q3), versus 1,183 to the end of Q3 in 2007 (a 26% increase).
The construction and services sectors have been most impacted. In construction, 223 companies shut down at the end of Q3 this year, compared with 126 companies at the end of Q3 last year, an increase of 76%.
In services sector, 167 companies were unsuccessful at the end of Q3 this year versus 102 companies at the end of Q3 last year, a 63% increase.
