Startup numbers rise but insolvencies grow

There was an 11% growth in company start-ups in Dublin from 2,376 last year to 2,645 in the third quarter of 2024.

Other counties to see positive double-digit quarterly growth include: Longford (79%), Wexford (68%), Roscommon (34%), Sligo (34%), Westmeath (25%), Wicklow (22%).

Amongst the other counties with large urban populations, Galway saw 9% quarterly growth while Cork and Limerick saw contractions in start-up growth of 8% and 4% respectively.

The motor sector saw a 48% increase in new firms, real estate was up 28%, manufacturing was up 15% and the IT sector up 11%.

Only two sectors saw a quarter-on-quarter decrease in new startups; agriculture, hunting and forestry were down 10% and the leasing sector contracted by 24%.

“2024 has been another positive year of economic growth in Ireland. In recent days, we have seen corporate tax receipts for the first nine months of the year grow by 23%, leading to an 11% rise in overall Exchequer tax receipts in the year to date,” Christine Cullen, managing director of CRIFVision-net said.

“Budget 2025 included a number of support measures for Irish business owners, including the €4,000 ‘power-up’ grant. In recent days, the Minister for Enterprise, Trade and Employment has also pledged his commitment to shifting his department’s focus toward supporting indigenous ‘family businesses’, including SMEs, start-ups and scale-ups across the country.

“However, this sentiment will offer little reassurance to struggling business owners in the hospitality sector. Factors such as rising input costs, weak demand in certain industries, and tightening credit conditions remain key challenges,” Ms Cullen said.

Separate insolvency reports suggest the number of firms to shut this year will reach 900. Analysis by PWC estimated that over 4,500 businesses were saved from failure primarily as a result of the Government’s covid supports, with a number of these businesses essentially being put on ‘life-support’.

Construction costs

The CRIF data also points to further challenges within the construction sector. While the Government allocated €6bn in capital funding for housing in the budget there has been a 127% increase in insolvencies within the construction industry, coupled with a modest 15% rise in new start-ups.

“Rising material costs, labour shortages, and persistent inflationary pressures are making it increasingly difficult for many construction firms to remain viable, despite the growing demand for new housing,” Ms Cullen said.

“Nevertheless, with sustained investment and strategic reforms, the sector has the potential to stabilise and contribute to meeting the housing needs of the country.”

A separate report from BNP Paribas shows construction activity in Ireland in September contracted with activity decreasing in four of the past five months.

According to the survey of 150 construction firms, housing activity returned to growth following a fractional reduction in the previous survey period. Activity on residential projects has now increased in six of the past seven months. In contrast, commercial activity dipped back into contraction during September after having seen growth in August.

The slight reduction in total construction activity was recorded in spite of a further expansion of new orders during the month. New business increased for the seventh month running, with panellists reporting improving client demand and the sign-off on projects which had been priced in previous months.