Rise in company closures, but more start-ups — Vision-net

In the first 11 months of this year, 1,829 companies closed, leaving behind €1.15 billion of debt. This represents five companies closing each day, which is up 20pc on the same period last year.

However, so far this year, 13,382 companies started trading, compared with 12,895 in the same period last year.

Of the companies that began trading this year, 14,628 directors attached to them had been involved in a business before while 23,040 other directors were setting up for the first time.

Since the recession began in 2008, 55,539 companies have been incorporated while 46,931 companies have closed, showing an average annual growth in the number of companies of 2,152.

Christine Cullen, managing director of Vision-net, said the new figures show that many directors whose businesses have failed are prepared to try again and, as an economy, we need to support that resilience and resourcefulness in tackling the unemployment crisis.

“The figures show that entrepreneurship is still strong in our workforce and the enterprise economy remains resilient in the face of a global recession.

“However, increased concern about the stability of the euro currency and high unemployment means consumer sentiment remains weak resulting in lower demand across the domestic sector.

“Corporate insolvencies remain high and we are seeing a marked increase in the number of companies creeping into the medium to high-risk category which is mainly due to difficulties settling debts and lower profits,” said Ms Cullen.