- by Ellie Kearns on 19/09/2023
In the ever-evolving landscape of Irish entrepreneurship, the trajectory of start-ups over the past few years has been nothing short of intriguing. From 2017 to 2020, Ireland witnessed a period of remarkable consistency in the number of company start-ups. However, in 2021, there was a dramatic peak that caught the attention of both investors and aspiring entrepreneurs. But, as we delve into 2022 and 2023, we find ourselves in a phase where the number of start-ups has decreased, though there are promising signs of growth.
The Consistent Years (2017-2020)
From 2017 to 2020, Ireland's start-up scene was characterized by a steady flow of new businesses entering the market. This period was marked by a sense of stability and predictability. During these years, the entrepreneurial spirit thrived, and was upheld by a favourable and sustainable business environment.
Here's a breakdown of the figures during this time...
The Pinnacle of 2021
Then came 2021 - a total of 25,693 new companies were formed in that year, marking a significant increase from the previous years. This surge could be attributed to various factors such as innovative ideas, increased demand for digital services, and pent-up and forced entrepreneurial energy that emerged after the challenges of the pandemic.
The Current Landscape (2022-2023)
However, as we transitioned into 2022, the start-up scene took a different turn. 2022 experienced a plateau in company start-ups, with a total of 21,637 for the whole year. A significant dip from the previous year.
But there's hope on the horizon. In 2023, the trend seems to be increasing. So far in 2023, there have been 16,445 company start-ups in Ireland. We predict a further 5,800 will be formed in Q4 of 2023, making the overall total of company start-ups 23,201 for the whole year. This will mean there will be an overall 7% increase in company start-ups in Ireland from 2022 to 2023.
These figures suggest that, although the total of company start-ups in Ireland have seen a significant decrease since the pinnacle year of 2021, the number is beginning to grow overall, providing a prosperous and promising future for the Irish economy.
In the end the decrease in company start-ups in Ireland since 2021 is most likely a multifaceted issue influenced by global and local factors. The upcoming budget is likely to play a key role, with the right support, including government initiatives, access to funding, and a favourable regulatory environment, Ireland can continue to be a hub for innovation and entrepreneurship. The entrepreneurial spirit remains alive, ready to contribute to Ireland's economic growth and prosperity.