12,142 new companies were formed in the first half of 2019, or 67 every day with nine counties seeing double-digit start-up growth.
Ireland has beaten its company start-up record for a half-year period, according to business and credit risk analyst CRIF Vision-net.
CRIF Vision-net’s latest half-year figures show that 12,142 companies were formed in the first half of 2019, which works out at 67 companies being formed every day. This is a 5pc increase on the same period in 2018 (11,553).
The professional services industry was the biggest contributor to new start-ups in the first six months of the year, with 2,653 new start-ups established; a 9.7pc increase on last year’s figure. Social and personal services grew by 39pc (457 new companies).
“Despite the great ‘known-unknown’ of Brexit, Ireland’s economy remains in an overall buoyant state”
In total, nine counties recorded double-digit growth in start-ups in the first half of the year. Dublin recorded the highest number of start-ups: 5,875 start-ups were established in the capital between January and June, accounting for almost 50pc of the total number of start-ups established.
Cork and Galway followed with 1,183 (+3pc) and 482 (+3pc) new companies registered in the first half of the year, respectively. Limerick saw a 9.5pc decline in the number of new companies registered as compared with the previous year.
Of the 26 counties in the Republic of Ireland, 16 experienced an increase in their start-up numbers in H1 2019, including Leitrim (57.6pc), Cavan (26.2pc), Longford (18.4pc), Waterford (15.6pc), Wexford (15.1pc) and Donegal (17.5pc).
“The government must continue to support businesses, particularly SMEs, so that the economy is as prepared as possible for any turbulence that results from a hard or no-deal Brexit”
In line with national figures, three of the five border counties – Cavan, Donegal and Monaghan – experienced a decrease in construction start-ups.
Commenting on the 2019 half-year figures, Christine Cullen, managing director of CRIF Vision-net, said: “Despite the great ‘known-unknown’ of Brexit and a gentle deceleration of the rapid economic growth of the last five years, Ireland’s economy remains in an overall buoyant state.
“This is very evident in our half-year figures, which show a record-breaking period for new company start-ups. Professional services, wholesale and retail experienced steady growth. Despite a slight decrease in construction start-ups, the industry continues to thrive overall.
“However, in some areas, it is becoming clear that external factors are affecting our economy, with warnings of economic overheating and Brexit-related downturns.
“Brexit continues to affect many business agendas, and the current state of negotiations between London and Brussels have made it difficult for businesses to plan for long-term budgeting, exporting and marketing. Among the five counties that border Northern Ireland, Monaghan and Sligo reported a significant decrease in start-up figures. Construction start-ups decreased in Cavan, Donegal, and Monaghan. Ireland’s unique exposure to Brexit means the government must allow for detailed analysis of all scenarios to offset some of its negative impact on the Irish economy in the long-run.”
Building on the successful half yearly figures, UK & Ireland regional director, Sara Constantini commented, “The Minister for Finance’s decision to set out two budgetary scenarios involving both an orderly and a disorderly Brexit for his Budget 2020 framework is an important step towards mitigating any detrimental impact on our economy and finances. The government must continue to support businesses, particularly SMEs, so that the economy is as prepared as possible for any turbulence that results from a hard or no-deal Brexit.”
Written by Stephen Larkin
Published 17 July, 2019