The number of new start-ups registered in Ireland last year dropped to their lowest figure on record since 2016, according to the latest data from CRIFVision-net.
A total of 21,637 new companies were registered in 2022. This was slightly above the 2016 figure of 21,018.
The number of newly registered start-ups last year was also 16pc lower than 2021 levels.
“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,” CRIFVision-net managing director Christine Cullen said.
While the first half of the year saw a strong start for new company registrations, July recorded the lowest number of start-ups across the year.
Insolvency figures were up 17pc to 592 in 2022, while a total of 105 start-ups entered bankruptcy in 2022. This reflected a 47pc rise from 2021 as a growing number of companies grappled with soaring costs.
Women led around 18pc of the start-ups registered in 2022, remaining unchanged from the year prior.
The number of new companies in the wholesale and retail industry also plummeted by 43pc across the year. The number of start-ups focused on the manufacturing and leasing sectors declined by 6pc and 14pc respectively in 2022.
“Decreases in traditionally strong performing sectors for the Irish economy like manufacturing and leasing suggest that this period of cost increases will likely remain a challenge for some time,” Ms Cullen added.
However, some sectors recorded an increase in start-up activity. The number of agricultural start-ups rose by 14ppc, while the number of newly opened hotels and restaurants rose by 6pc..
Dublin was home to the highest number of start-ups in Ireland, with 9,433 of the total 21,637 located in the capital. Sligo saw the largest percentage decrease in new companies last year, recording a total of 161 new start-ups. This was down 23pc compared to 2021.
“A bright spark, however, is that in spite of a 16pc 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,” Ms Cullen concluded.