The wholesale and retail trade sector (-43%, 2,096) recorded the biggest drop in new company start-ups in Ireland last year compared to 2021, research shows.
According to the latest figures from credit analyst CRIFVision-net. the wholesale and retail trade sector was followed by manufacturing (-30%, 561), fishing (-27%, 24) and computers (-24%, 1,117).
Commenting on the 2022 figure, Christine Cullen, managing director of CRIFVision-net, said, "Start-ups faced a different economic environment in 2022. A combination of inflation, high interest rates, geopolitical uncertainties and energy insecurity led to an uncertain economic environment."
Lowest Point In Six Years
The data indicated that Ireland’s new company start-up levels reached their lowest point in six years in 2022 due to economic uncertainty brought by rising inflation and a cost-of-living crisis.
The recently released annual figures reveal that a total of 21,637 new start-ups were registered in 2022, the lowest figure on record since 2016 (21,018).
The 2022 figure also marks an overall decrease of 16% in new registrations when compared to 2021.
Regional Overview 2022 Verus 2021
Of the 26 counties in the Republic of Ireland, a total of 23 recorded a decrease in new company start-ups for 2022.
Sligo experienced the largest percentage decrease, recording a total of 161 new companies in 2022, down 23% when compared to 2021.
Sligo was followed by Louth (-22%), Dublin (-20%) and Donegal (-16%).
Leitrim (+23%, 122), Mayo (+8%, 357) and Laois (+6%, 271) were the only counties to record a percentage increase.
Dublin homed the highest number of start-ups in Ireland with 9,433, with Dublin 10 recording the highest year on year percentage increase (+125%) in the capital followed by Dublin 7 (+96%), Dublin 8 (+59), Dublin 5 (46%) and Dublin 17 (41%).
The data indicated that only five industries recorded an increase in new company start-ups, during the period.
Extra-territorial organisations and bodies experienced the largest percentage increase (+50%), followed by agriculture (+14%), hotels and restaurants (+6%) and electricity, water and gas supply (+5%).
“A bright spark, however, is that in spite of a 16% decrease in start-ups in 2022, there was a consecutive increase month-to-month in the final two months of the year suggesting there are many businesses and entrepreneurs willing to invest in new ventures," Cullen added.
“This, coupled with recent Government budget surpluses and a net growth in exports, suggests an understated resilience in the Irish economy in 2023.”
© 2023 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. For more retail news, click here. Click subscribe to sign up for the Checkout print edition.