A positive start to the year sees company start-ups rise by 13 per cent and corporate insolvencies fall by just over 17 per cent in Ireland.
Between 1st January and 28th March this year, company start-ups increased by 13% when compared to the same period last year.
The professional services sector was the most popular industry for start-ups as it accounted for 21% of the 4,912 new companies formed. The sector that saw the biggest increase in numbers was Finance, which saw 554 new start-ups, an increase of 366. This was followed by construction which had 474 new start-ups for the first three months of 2016, an increase of 104.
44 per cent of all start-ups were established in Dublin, while all regions in Ireland (Dublin, Leinster (excluding Dublin), Munster, Connacht and Ulster) experienced a rise in the number of start-ups. The total number of start-ups in Munster exceeded those established in Leinster (excluding Dublin), with 1,199 compared to 998. Compared to the same period last year, the number of start-ups in Munster increased by 26% over the period.
Company insolvencies dropped from 275 in Q1 2015 to 227 in the same period this year—a decrease of 17 per cent. The professional services sector was worst affected and accounted for just over a fifth of all insolvencies recorded – this still represents a small drop when compared to Q1-2015’s figure (49 v 53).
A number of industries saw notable decreases in insolvencies recorded this quarter – these include Wholesale & Retail (down 30%), Real Estate (down 38%) and Hospitality (down 57%).