There were 23,909 new companies and businesses formed so far this year – an average of 3,984 start-ups per month according to the latest figures from Vision-Net.
While overall, start-ups in 2016 are up just over 5% on the same period last year, there has been a significant increase in new companies formed. Company start-ups are 21% higher this year compared to last while registered businesses are down by 4%.
With the exception of January, every other month in 2016 has seen an increase in company start-ups when compared to the corresponding month in 2015. The average figure for monthly start-ups this year is 1,748 compared to 1,445 per month last year.
The average figure for monthly start-ups this year is 1,748 compared to 1,445 per month last year. Wexford, Cork and Donegal were the counties with the highest increase in start-ups when compared with first quarter and second quarter, 2015; indicative of a spreading regional recovery.
The professional services sector remains the most popular industry for company start-ups in 2016, accounting for one in five new companies.
However, financial services was the sector with the greatest increase in start-ups when compared with the same period last year, with 1, 337 new financial services start-ups or 866 more than the first six months of 2015.
This trend could bode well for Ireland’s financial services sector seeking to capitalise on post-Brexit opportunities.
Other sectors which have experienced strong start-up growth include utilities, construction and transport and logistics sectors. However, the agriculture and real estate sectors both suffered a fall in start-ups when compared with last year.
Managing Director of Vision-net.ie, Christine Cullen commented, "Today’s data, covering the first six months of 2016, shows a continuing strengthening of our economic recovery, with particularly positive indications that the recovery has begun to spread beyond large urban growth centres to more rural counties. The fall in insolvencies in 60% of Irish counties evidences this welcome trend, equally does the increase in company start-ups outside of Dublin."
She added, "Interestingly, the increase in new financial services companies could bode well for Ireland’s financial services sector seeking to capitalise on post-Brexit opportunities, as UK companies look to Ireland for market entry to the EU."