New businesses up and insolvencies down in August –

There was a 40pc decrease in the number of businesses failing this month, according to the latest figures from Vision-net.

Increase in Business Establishments

Figures for August 2013 show that a total of 2,769 companies and businesses were established this month, an average of 106 per day. This represents an increase of 13pc on the same month last year.

Less than four companies a day closed this month, with insolvencies down by 40pc compared to the same month last year.

Insolvency Statistics

Of the 91 companies declared insolvent in August, 43 were liquidated, 46 entered receivership, with just two examiners appointed. When compared to August 2012, liquidations are down 54pc, receiverships are down 18pc while examinerships remain in line with the same period last year.

Regional Insolvency Distribution

Dublin accounted for just over 40pc of all insolvencies. Insolvencies in Cork (16.5pc of the total) are up by 12pc compared to the same month last year. The north-east counties of Meath and Louth accounted for 17pc of total insolvencies in August 2013.

Segment Analysis of Insolvencies

Professional services companies represented the largest segment of overall insolvencies this month (24pc), followed by real estate (16.5pc) and construction (15pc). Four of the 91 insolvent companies came from the motor trade.

Positive Outlook and Entrepreneurship

“Incorporation levels are steadying at pre-recession levels which is encouraging. Insolvencies saw a sharp drop this month, and the level of start-ups is now notably more than the companies closing,” said Christine Cullen, managing director of

“The numbers are indicating a rise in business confidence which, coupled with the resilience of those businesses that have weathered the worst of the storm, means 2013 looks set to be the best in some time.

“People are still willing to self-start businesses, and these rates of entrepreneurship are encouraging, even if some of them are by necessity. We are seeing a greater emphasis on business planning too, with better decision-making providing a sounder platform for these new ventures and, ultimately, consumers.”

Karina Corbett