Eight per cent increase in start-ups in 2016

The number of new start-up companies formed in Ireland during 2016 rose by eight per cent to just under 21,000, according to new data published by Vision-net.ie – its highest rate of growth for 18 years.

Christine Cullen, managing director, Vision-net.ie, believes the figures indicate a ‘robust recovery’ for Ireland’s small business community.

The capital, Dublin, registered the highest percentage of new business start-ups in 2016, with more than two-fifths (45.5 per cent) of all new SMEs registered here over the course of the year.

The next most prominent start-up location was Cork (12 per cent), followed by Galway (4 per cent), Kildare (3.5 per cent) and Limerick (3 per cent).

“Following the publication of 2015’s excellent figures, we talked about a robust and visible recovery,” said Cullen.

“This year, it’s plain to see that Ireland has entered a completely new post-austerity economic cycle powered by strong growth.

“Our economy is also diversifying. Ireland’s professional services sector, along with our finance, construction, tech, manufacturing and hospitality sectors, are buoyant.”

Ireland’s finance and construction sectors were particularly impressive in terms of 2016 growth. 2,959 new finance start-ups were formed in the last 12 months, up 44 per cent year-on-year. Meanwhile, the construction sector saw a 14 per cent year-on-year growth, with 1,876 new construction firms formed.

There was further positive news from the figures, which show a 10 per cent decline in the number of insolvencies in 2016. A total of 984 business start-ups were unable to pay their debts - but this was the first time fewer than 1,000 insolvencies were recorded since 2008.

Date published 9 Jan 2017 | Last updated 9 Jan 2017