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.
This is according to the latest figures from credit analyst, CRIFVision-net.
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.
Dublin homed the highest number of start-ups in Ireland with 9,433, with Dublin 10 recording the highest year-on-year (YoY) percentage increase (+125%) in the capital followed by Dublin 7 (+96%), Dublin 8 (+59), Dublin 5 (46%) and Dublin 17 (41%).
The figures show that Sligo experienced the largest percentage decrease, recording a total of 161 new companies in 2022, down 23% when compared to 2021. Sligo was followed by Louth (-22%), Dublin (-20%) and Donegal (-16%).
According to the figures, Leitrim (+23%, 122), Mayo (+8%, 357) and Laois (+6%, 271) were the only counties to record a percentage increase.
CRIFVision-net assert 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.
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).
Commenting on the 2022 figure, Managing Director of CRIFVision-net, Christine Cullen said, "Start-ups faced a different economic environment in 2022. A combination of inflation, high interest rates, geopolitical uncertainties and energy insecurity led to an uncertain economic environment."
She added, "A bright spark, however, is that in spite of a 16% decrease in start-ups in 2022, there was a consecutive increase month-to-month in the final two months of the year suggesting there are many businesses and entrepreneurs willing to invest in new ventures. This, coupled with recent Government budget surpluses and a net growth in exports, suggests an understated resilience in the Irish economy in 2023."
Source: www.businessworld.ie
