Company incorporations up 28%

The number of new businesses setting up in Ireland is approaching pre-recession levels, with an average of 43 companies incorporated every day in July.

Some 1,247 companies were established between July 1st and 29th according to online company database Vision-net, a 28 per cent rise on the same period last year. It is the highest number of start-ups incorporated in a single month since July 2008, when 1,028 were recorded.

Almost one in four of these new companies are involved in professional services, with a further 11 per cent in retail, 9 per cent in social and personal services, 9 per cent in IT and 7 per cent in construction, the data shows.

The number of new companies recorded declined sharply when the recession hit, falling from 18,819 in 2007 to 13,479 in 2008. Figures have remained fairly flat since, but show signs of improving this year, with 9,018 incorporated so far this year.

Vision-net said they have seen more limited companies established in the first six months of 2013 than at any similar time period since before the recession, with more company formations recorded every month of the year than the equivalent month in 2012.

Of the 119 companies which failed in the month, 66 were liquidated, 47 entered receivership, and an examiner was appointed to six.

The number of insolvencies was down 6 per cent on July 2012, and 17 per cent on July 2011 when 144 companies failed.

The construction industry continues to have the largest percentage of insolvencies across all sectors, accounting for 19 per cent of failed companies in the month, followed by real estate at 18 per cent and professional services at 15 per cent.

Companies in the IT sector made up just 2.5 per cent of total insolvencies, according to the figures.

Vision-net managing director Christine Cullen said the figures show a slight improvement in the domestic economy.

“These findings are very encouraging as they demonstrate a growing resilience amongst Irish businesses and a move away from a negative to a more positive performance which, hopefully, can be sustained.”

She said entrepreneurship continues to be a strong trait of the domestic economy, underlying the importance of supporting this business sector.

“While we are not out of the woods yet, there is certainly evidence and cause to be optimistic about the road to recovery.”

Enterprise Ireland’s head of corporate communications Alan Hobbs said the Vision-net figures would reflect the increase in the number of new start-ups they have observed in recent months.

“A lot more people are considering going out on their own, and seem to have more confidence to do that now. Ironically it is a by-product of the recession, when people lose their jobs they look to create their own employment.”

Enterprise Ireland invested in more than 160 start-ups in 2012.