Company incorporations at their highest in five years – Vision-net
Company incorporations in July 2013 are at their highest since 2008, according to new figures from business and credit risk analyst Vision-net.
The figures reveal that 1,014 companies were established in July 2013, a 24pc rise on July 2012, when 819 companies were incorporated. This is the highest number of start-ups since July 2008 when 1,028 incorporations were recorded.
According to Vision-net, 2,569 companies and businesses began trading in July – an average of over 100 per day –which is down 3pc on the same month last year.
Vision-net said he types of start-up businesses developed by entrepreneurs over the last year show very little fluctuation when compared with previous years.
On average, five companies failed every day in July. Of the 119 insolvent companies, 66 were liquidated, 47 entered receivership, and an examiner was appointed to six.
The number of insolvencies in July was down by 6pc compared to the same month in 2012. This also represents a 17pc drop on the figure from the same period in July 2011 (144).
At 19pc, the construction sector continued to have the largest proportion of insolvencies across all business sectors in Ireland during July 2013. Next in line were real estate at 18pc and professional services at 15pc.
The figures show that companies in the IT sector made up just 2.5pc of total insolvencies in July.
‘The decline in company insolvencies which is down 6pc on the same period last year is very encouraging,” said Christine Cullen, managing director of Vision-net.
“Equally the incorporation rate is growing and for the first time in four years it has aligned with pre-recession levels. These findings are very encouraging as they demonstrate a growing resilience amongst Irish businesses and a move away from a negative to a more positive performance which, hopefully, can be sustained in Q3 and Q4.”
Cullen said entrepreneurship continues to be a strong trait of the domestic economy, underlying the importance of supporting this business sector. “While we are not out of the woods yet, there is certainly evidence and cause to be optimistic about the road to recovery and economic growth.”