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Irish economy boosted by 24% rise in business start-ups

Written by Robert McHugh, on 2nd Jun 2015. Posted in Economy

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Figures released today by Vision-net.ie show that business start-ups rose by 24% and insolvencies dropped by 38% in May, compared to the same period last year.

There were 3,653 company and business start-ups recorded (or 135 each day) for May, a 24% rise on the same month in 2014. An estimated 59% of all new registered business names were sole traderships.

According to the figures, the most popular industries were professional services, accounting for almost 30% of all company start-ups (up 35% on May 2014); wholesale and retail (10% of start-ups); and social and personal services (9%). Construction and hospitality start-ups rose by 15% and 27% year-on-year, respectively.

Furthermore, Dublin, Cork and Galway are the most popular counties in Ireland for new business, with the capital home to 699, or 50%, of all new company start-ups established in May. Limerick and Cork proved more attractive places to do business in May 2015 than the same period last year, with a 71% and 32% rise in new start-ups (145 and 48 new businesses], respectively.

The figures also show that insolvencies fell by 38% compared to the same period last year, to 79. Dublin accounted for just over half of all insolvencies (40), followed by Galway (8) and Limerick (5). Counties Carlow, Kerry, Laois, Leitrim, Mayo, Westmeath, Wicklow, Kilkenny, Offaly and Roscommon reported no insolvencies.

Managing Director of Vision-net.ie, Christine Cullen said, "Our data is highlighting growing numbers of new businesses opening up and established businesses becoming less vulnerable to collapse. This increase in start-ups at one end and the decrease in business failures at the other, indicates that a natural balance and normality is starting to return to the Irish economy.

Furthermore, the increasing popularity of locations outside of Dublin, like Limerick and Cork, for new start-ups indicate that business environments are now becoming less hostile outside the capital city. It bodes well for a resurgence within our regional business centres."

Source: www.businessworld.ie