![if !IE]> <![endif]>
- by Ellie Kearns on 07/02/2023
Ireland's new company start-up levels reached their lowest point in six years in 2022 due to economic uncertainty brought by rising inflation and a cost-of-living crisis.
The annual figures released reveal that a total of 21,637 new start-ups were registered in 2022, the lowest figure on record since 2016 (21,018). The 2022 figure also marks an overall decrease of 16% in new registrations when compared to 2021.
According to the data, the first half of the year recorded the highest number of new company start-ups (11,167, January - June). July was the worst month for new registrations (1,573) in 2022, while May was the best month for start-ups (1,978).
Despite the overall decrease in activity among the start-up community in 2022, there were some signs of regrowth, with two consecutive months of increase recorded in November and December.
Insolvency figures for 2022 were up 17% YoY and a total of 105 start-ups entered bankruptcy in 2022, a 47% YoY increase. While the number of start-ups entering examinership was down 7% and those entering receivership also dropped by 9%.
Female directorships accounted for 18.06% of start-ups in 2022, a 0.79% increase YoY. While male directorships of start-ups in Ireland saw a 0.78% increase, up to 41.06% compared to 40.28% a 2021.
Manufacturing (-6%) and leasing (-14%), traditionally strong performing sectors for the Irish economy, both dipped in 2022.
Regional overview 2022 vs 2021
Of the 26 counties in the Republic of Ireland, a total of 23 recorded a decrease in new company start-ups for 2022.
Dublin homed the highest number of start-ups in Ireland with 9,433, with Dublin 10 recording the highest YoY percentage increase (+125%) in the capital followed by Dublin 7 (+96%), Dublin 8 (+59%), Dublin 5 (46%) and Dublin 17 (41%).
Sectoral overview 2022 vs 2021
In 2022 the majority of industries experienced a similar decline in start-up activity:
Insolvencies: 2022 vs 2021
The overall insolvency rate for 2022 was up 17% compared YoY to 2021, totalling 592 insolvencies for the year.
Within this period, the largest numbers of insolvencies were recorded in the month of December, with a total of 101, an increase of 57 compared to December of 2021. February was the least insolvent month with a total of 23 insolvencies.
Keep an eye out for our blog next week, where our MD Christine Cullen will be commenting on the the annual figures.
2022 saw a rapid decrease in Irish start-ups, reaching their lowest point in 6 years. This decline was a direct result of rising inflation and a cost-of-living crisis in Ireland.
You're invited! We'd like to help you get the latest data on the companies that matter to you. In the fastest way possible. To do this we're holding a number of free information sessions for our customers and their teams.
Company's approach to 'sustainability' has now become a key factor when deciding on who to partner, or do business with.
We're pleased to announce in the next week we'll be adding a new section to our company credit reports on 'Corporate Sustainability'.