New company start-ups surpass 20,000 for first time in almost two decades

The number of new company start-ups surpassed 20,000 this year (whole of 2016), the first time this has happened since 1998, according to new annual figures from leading business and credit risk analyst, Vision-net.ie.

NEW COMPANIES & BUSINESSES

There were 20,997 new companies registered in 2016, 8% more than 2015 (19,501). In addition to this being the first time more than 20,000 companies have been registered in a single year in almost two decades, it is also the second highest number recorded for 36 years.

Overall, the number of total new start-ups, which includes new companies and new businesses, was 46,101, a slight 2% decrease on 2015 (46,979); although 1,496 more companies were registered this year compared to 2015.

The finance and construction sectors performed strongly in 2016. A total of 2,959 new finance companies were set up, up 44% on 2015 (2,061); construction was up 14%, from 1,640 new companies in 2015 to 1,876 in 2016.

Professional services was the most popular industry for new company start-ups: 4,079 were established in 2016, a 5% increase on 2015 (3,891). The second most popular industry was finance, followed by wholesale and retail (2,204), up slightly on last year (2,190). Social & Personal services and Construction (up 8% and 14% respectively) were the fourth and fifth most popular industries.

REGIONAL BREAKDOWN

Dublin accounted for the vast majority — 45.5% — of all new company start-ups in 2016, followed by Cork (12%), Galway (4%), Kildare (3.5%) and Limerick (3%). Cork’s overall share of company start-ups last year was up 1.4% on its 2015 figure – this is the biggest increase in market share recorded by any county in 2016.

INSOLVENCIES

A total of 984 insolvencies were recorded in 2016, a 10% drop on 2015’s figure of 1,096. This is the first time fewer than 1,000 insolvencies have been recorded in a single year since 2008.

Most industries recorded an overall drop in insolvencies. The most insolvent industry was professional services which accounted for 213 insolvencies. Construction was the second most insolvent industry (159), but the number decreased by 4% on 2015 (166).

Dublin was the most insolvent county in Ireland, recording 414 insolvencies—although this was down 13% on 2015 (414). Cork, the second most insolvent county, recorded 24 fewer insolvencies in 2016 (88) compared to 2015 (112), a 21% decrease. Limerick, Galway and Kildare were the next most insolvent counties.