Irish startups rise 7% but insolvencies also growing

Irish startups have risen by 7%, but insolvencies are also growing, new data shows.

15 counties recorded company startup growth year on year, while 10 have seen a decrease.

According to the latest startup and insolvency figures, for the third quarter of 2024 from credit risk analyst CRIFVision-net, there is a complex economic picture for indigenous companies.

Longford recorded the highest number of new start ups at 79%.

Strong growth was also seen in Wexford (68%), Roscommon, Westmeath, Wicklow and Dublin.

However Cork was down 8% and Limerick contracted by 4%.

The motoring sector had the largest percentage growth at 48%, Real Estate was up 28%, Manufacturing and IT were also up 15% and 11% respectively.

Two sectors saw a decrease, agriculture, hunting and forestry was down 10%, and leasing contracted by 24%.

Challenges in the hospitality industry, such as rising input costs, weak demand in certain industries, and tightening credit conditions were also reflected in today's figures.

It saw a minimal 1% increase in start-ups, with insolvencies continuing to rise.

Christine Cullen, Managing Director of CRIFVision-net said 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."

Despite startup figures being generally healthy, the rise in insolvencies points to a more complex business operating environment.

The view on the ground amongst many Irish business owners is mixed.

"This week's 2025 Budget included a number of support measures for Irish business owners, including the €4,000 'power-up’ grant," said Ms Cullen.

"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."

While the 127% increase in insolvencies within the construction industry, coupled with a modest 15% rise in new start-ups, signals ongoing challenges in addressing the housing shortage, according to Ms Cullen.