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29% decline in Irish start-ups during early stages of pandemic

Written by Robert McHugh, on 15th Jun 2020. Posted in General

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April proved to be a difficult period for start-ups, with a decrease of 43% in new company and business compared to April last year. This is according to the new figures published today by business and credit risk analyst CRIF Vision-net.

Irish start-ups have declined by 2,253 companies and businesses for the combined period of March and April when compared to the same period in 2019 (7,773 start-ups).
 
While the figures suggest a downturn in start-ups from March (-15% YoY), the month of April proved to be the most difficult month for company start-ups this year, with a decrease of almost 45% compared to April 2019.
 
The Covid-19 pandemic has had a negative impact on the growth of start-ups across most industries, with the majority of sectors experiencing a drop in company start-ups during March and April when compared to the first two months of the year.

Leasing (53 start-ups, -52%), construction (237 start-ups, -49%) and motor (29 start-ups, -49%) industries experienced the biggest decline in start-ups during this period, followed by education (40 start-ups, -48%), community, social and personal activates (267 start-ups, -43%) and hospitality (131 start-ups, -41%).

The financial intermediation sector experienced unique growth in start-ups during this period, with an increase of 22% during March and April, totalling 586 start-ups to date.
 
Dublin (3,144), Cork (625) and Meath (315) recorded the highest number of start-ups so far this year. However, the figures released today reveal that all counties in Ireland have experienced a decline in company start-ups since the beginning of March. 

According to the data, Sligo (-69%), Leitrim (-67%), Longford (-64%) and Louth (-64%) are among the counties worst affected by Covid-19, experiencing the biggest drop in start-ups during the months of March and April.

Commenting on the figures, Managing Director of CRIF Vision-net, Christine Cullen said, "Covid-19 has had a significant impact on businesses of all experience levels. Whether it is a company start-up or a well-established business, everybody has felt the brunt of the pandemic with lockdown and social distancing restrictions having obvious operational and financial implications for many industries."

He added, "To this end, it may not come as a complete surprise that we have experienced a decline in start-ups since the beginning of the pandemic. Even in the best of times, the survival of a start-up isn’t guaranteed and the current climate is certainly not one that fosters growth and development."
 
Source: www.businessworld.ie

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