The number of new company start-ups in the first three months of the year rose almost 10% when compared to the same period last year.
The growth in new firms came despite a 56% increase in insolvencies over the same timeframe.
“The first three months of the year has shown a diverse economic picture,” said Christine Cullen, Managing Director of CRIFVision-net, which compiled the figures.
“At a high level, it is encouraging to see company start-ups increase by 10% year-on-year, however, within this, numerous prominent sectors continue to face difficulties.”
“The challenges facing the hospitality industry have been well documented and this is borne out in the dramatic spike in insolvencies across the sector. Despite this backdrop, it is encouraging to see new hospitality start-ups grow by 13% year-on-year.”
Overall, 13 sectors saw the number of startups increase, with real estate up 23%, legal, accounting and business up the same amount, computers expanding 21%, leasing growing 17%, wholesale and retail trade climbing 14% and hotels and restaurants by 13%.
But contractions in the number of startups were registered in education, down -5%, electricity, gas and water supply -8% lower and agriculture falling -32%.
The number of insolvencies also spiked in the period, coming in 56% higher year on year.
In particular, the number of insolvencies rose 367% in real estate, 271% in financial intermediation, 132% in hospitality, 129% in legal and 46% in construction.
“In broader economic terms, construction start-ups grew by seven per cent. However, insolvencies grew by 46%,” said Ms Cullen.
“At a time when our new Taoiseach has committed to building 250,000 new homes between now and 2030 it is important that we are creating and supporting a thriving construction sector capable of delivering upon these targets.”
January was a particularly difficult month for hospitality, with 1,916 insolvencies, versus 639 for the same month in 2023 as rising costs took their toll.
“In recent days, newly appointed Taoiseach Simon Harris TD has committed to providing €250 million in supporting small businesses with increased costs,” Ms Cullen said.
“These supports will be critical in stemming the recent increases in insolvencies and helping small businesses weather the continued inflationary pressures.”
