July's company start-ups up 11pc - Vision-net

July’s company start-ups up 11pc – Vision-net

Company start-ups in July were up 11pc over the same month last year to 1,518, according to new figures from Vision-net.ie.

This is the highest number of company start-ups for of July since pre-recession 2007 and works out at almost 49 new companies each day.

Vision-net said the professional services sector was the most popular industry for start-ups in July, accounting for 22pc of new companies, followed by wholesale and retail (10pc) and construction (9pc).

The figures also reveal a 47pc fall in construction company insolvencies compared to July 2013. Dublin was the location of 51pc of company start-ups in July, followed by Cork (8pc) and Limerick (4pc).

Vision-net said industry sectors that experienced high levels of failure during the recession are showing increasingly resilience. In July, insolvencies in the motoring sector fell by 86pc compared to the same time last year, while they were down by 47pc in construction and by 29pc in real estate. Insolvencies in the manufacturing sector have stabilised and remain at the same level as a year ago. However, the wholesale and retail sector remains vulnerable with 31 businesses collapsing during July, a rise of 139pc on the previous year.

Dublin accounted for 46pc of the overall 166 insolvencies nationally in July, followed by Cork with 13pc in Cork and 6pc in Galway. Counties Carlow, Leitrim, Waterford and Longford recorded no insolvencies last month.

In June, meanwhile, a total of 362 bad debt judgements were awarded against consumers and companies, worth €45m. Sixty-seven percent of judgments were awarded against consumers, totalling €43.4m, or 96pc of the overall value of all judgments awarded.

“July’s company start-up figures are the highest seen in that month in seven years and are indicative of greater business confidence,” said Vision-net managing director Christine Cullen. “The strong increase in start-ups will also have a knock-on effect in the wider economy such as in job creation or improving B2B trading.

“This month construction continues to be the sector to watch, having grown to be the third most popular industry for company start-ups. Likewise, a decline in insolvencies in the motoring, construction and real estate sectors is encouraging. This decline indicates that these industries are gradually becoming more resilient. While spending on big ticket items, such as cars or new homes, is beginning to recover, albeit from a low base.”

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