Company start-ups rose 11 per cent (1,518 ) in July 2014 when compared to the same month last year (1,371 ), according to the latest figures from Ireland’s leading credit and business risk analyst, Vision-net.ie
The company said this was the highest number of company start-ups for the month of July since pre-recession 2007 and equates to almost 49 new companies each day. The professional services sector was the most popular industry for start-ups in July, accounting for 22 per cent of new companies, followed by wholesale and retail (10 per cent ), and construction (nine per cent ).
The increasing stability in the construction sector is also reflected in the 47 per cent fall in construction company insolvencies, when July 2014 is compared with July 2013. Dublin was the home to 51 per cent of company start-ups in July, followed by Cork (eight per cent ), and Limerick (four per cent ).
In terms of insolvencies, industry sectors which experienced high levels of failure during the recession are showing increasing resilience. In July, insolvencies in the motoring sector decreased by 86 per cent compared to the same time last year; they decreased by 47 per cent in the construction sector; and fell by 29 per cent in the real estate sector. Insolvencies in the manufacturing sector have stabilised and remain at the same level as a year ago. However the wholesale and retail sector remains vulnerable with 31 businesses collapsing during July, a rise of 139 per cent on the previous year.
Christine Cullen, managing director of Vision-net.ie, said that last month’s promising figures were “further positive signs of economic renewal. July’s company start-up figures are the highest seen in that month in seven years and are indicative of greater business confidence. The strong increase in start-ups will also have a knock-on effect in the wider economy such as in job creation or improving B2B trading. This month construction continues to be the sector to watch, having grown to be the third most popular industry for company start-ups. Likewise, a decline in insolvencies in the motoring, construction, and real estate sectors is encouraging. This decline indicates that these industries are gradually becoming more resilient. While spending on big ticket items, such as cars or new homes, is beginning to recover, albeit from a low base,” said Ms Cullen.