Tuesday 27 September 2016

This year on track to be record one for startups

Paul O'Donoghue

Published 02/12/2015 | 02:30

Christine Cullen, Managing Director of Vision-net.ie, Ireland's leading business and credit risk analyst.
Christine Cullen, Managing Director of Vision-net.ie, Ireland's leading business and credit risk analyst.

This year is on track to be one of the best on record for startups, with almost 19,000 new firms expected to be registered by the end of the year.

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In November alone 1,417 new companies were registered, according to Irish business and credit risk analyst Vision-net.ie.

There has been a total of 17,304 new companies registered so far this year. At this point in 2014 16,201 new companies had been registered.

Vision-net managing director Christine Cullen predicts that just under 19,000 companies will be registered by the end of the year.

"The best year for start-ups since the 'Noughties' was 2006. We closed out at 19,306 company registrations," she told the Irish Independent. "We are 2,000 off that now. I don't think we'll record 2,000 corporate limited companies in December though.

"This year we are at 17,304. We will probably add another 1,400 to that but it could be more. Last December it was more than this it is hard to tell in a month which has so many holidays in it.

"So we may have a record year in that it will be in the top two or so since the year 2000 but it won't be an overall record."

Over 18,700 new company registrations would eclipse last year's figure of just over 18,000, which was the best year since 2007. It would also mark a notable incease since the figure of 15,662 recorded in 2013.

Ms Cullen said that this would likely represent a year-on-year increase of about 7pc, which she said is most likely due to industries badly hit by the recession, such as construction, resuming activity levels closer to those seen before the crash.

"What we are seeing in certain industries, like construction and retail, is a resuming of their natural space," she said.

Ms Cullen said the level of increase in some industries may need monitoring in the future if they begin to increase at alarming levels, but added: "I think now we should focus on getting the right balance of industries."

The three industries with the highest levels of startups during the month were professional services, wholesale and retail, and social and personal services.

Professional services accounted for almost 30pc of all new startups in the country.

Numbers in the sector rose 17.5pc year-on-year, from 361 to 424. Social and personal services startups increased by 55pc, from 115 to 178, while wholesale and retail increased by 6pc, from 132 to 140.

Continuing the trend of recent months, the construction sector enjoyed a high level of activity during November with startup numbers rising by 30pc year-on-year, from 86 to 112.

Dublin, Cork and Kildare were the three most popular locations for startups while the fourth and fifth most popular locations, Galway and Meath, experienced small declines in startup numbers (from 54 to 50 and from 53 to 40 respectively).

Although insolvency figures were unavailable, the study did show 276 corporate and consumer judgments were awarded to creditors for non-payment of debts during the month, totalling €16.3m.

Ms Cullen said the figures for November "repeat the consistently strong pattern" of growth this year. "What is most encouraging is the significant increase in startups in other key growth areas of the economy such as retail," she said.

Irish Independent

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