- by Patrick Cooney on 30/10/2019
Latest figures from CRIF Vision-net show that Ireland's economy continues to grow, despite mounting Brexit uncertainty.
The new quarterly figures published this week, reveal a growth of 5,010 new companies in Q3 2019, bringing the total number of start-ups in Ireland to 17,160.
An average of 55 new companies were formed every day in the first nine months of the year, with Dublin (7,127 start-ups, 41.5%), Cork (1,498, 8.7%), Galway (602 start-ups, 3,5%), Limerick (514 start-ups, 3%) and Kildare (489 start-ups, 2.8%) experiencing the highest levels of growth.
Dublin start-ups by area code
Within Dublin, the highest rate of new company start-ups was in Dublin 2 (1,652). Dublin 2 accounted for 10% of all start-ups in Ireland in the year to date. Dublin 4 saw 518 start-ups, representing three percent of total start-ups in Ireland. Dublin 1 (502, 2.9%) and Dublin 3 (421, 2.45%) saw the highest rates of new company start-ups in North Dublin.
Business and Consultancy growth
In terms of company growth by industry, business and management consultancy activities saw the largest growth, with a total increase of 1,380 (8% of all company start-ups) companies in the first nine months of the year.
Insolvencies: YTD 2019 vs same period in 2018
Despite the growth in business start-ups, there has been an insolvency increase of almost 10% compared to this time last year, totalling 1,519 insolvencies (companies who filed for liquidation, examinership or receivership) in the year to date.
Legal, Accounting and Business (300, 26.4%) and Financial Intermediation companies (276, 24%.3%) experienced the biggest increase in insolvencies this year with Wholesale and Retail Trade (79, 6.9%) and Construction (60, 5.2%) also facing challenges.
Dublin was the most insolvent county during this period (804, 70.8%) with Dublin 2 (450) accounting for almost 40% of all insolvencies in the country this year.
The most vulnerable stage for companies
Figures suggest that the most vulnerable stage for companies is between 0-6 years, with 29% of all insolvencies occurring in this age band. Within this age band, Year Four proved to be the most challenging year within a business's life cycle. It accounted for seven percent of all insolvencies in the year to date.
Commenting on the latest figures, 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.
According to Christine Cullen, Managing Director of CRIF Vision-Net:
"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. To this end, we must ask are Irish policymakers doing enough to support and incentivise these early stage businesses."
While they still often represent a point of last resort, the options available to individuals unable to meet debts as they fall due, are much greater today in Ireland than just a few years ago.
With the effects of Brexit still hanging in the balance, many Irish companies may be forced to look to wider European markets