Nearly 1,900 new start ups each month but insolvencies up 13%
An average of nearly 1,900 new start ups were formed each month in the first half of 2017,a 6% increase, according to new figures released today.
- Nearly 1,900 new company start-ups a month in first half of 2017, up 6% on last year
- Finance, construction, real estate, and social and personal services all recorded strong start-up growth;
- However, insolvencies rose 13% in the first half of 2017 compared to the same period in 2016;
- Real estate sector insolvencies nearly doubled;
Company start-ups were up every month compared to 2016, according to business and credit risk analyst, Vision-net.ie.
The most popular sector for company start-ups is professional services.
This was followed by finance and social and personal services.
Other sectors which performed well were construction start-ups, real estate and agriculture start-ups.
Dublin’s economic dominance continued with 45% of all new start-ups were established in the capital region.
The number of new start-ups in Cork decreased by 14% in the first half of 2017 compared to the same period last year.
Insolvencies rose 13% in the first half of 2017 compared to the same period last year.
Professional services companies were the most insolvent.
Surprisingly, the figures show that there was the near doubling of insolvencies in the real estate sector.
Commenting on the new figures, Christine Cullen, managing director of Vision-net.ie, said that we cannot discount the effects of Brexit.
"Many Irish industries rely heavily, often exclusively, on the UK for trade. As British businesses and consumers feel the pinch of higher living costs and a weaker sterling, many Irish businesses will find their revenue streams disrupted, whether they are food and drink exporters in Dublin or hoteliers in Kerry," she said.
"If this continues, the consequences for our economy will be severe, particularly in less developed parts of rural Ireland,” she added.
