Issue 647 (Week ending 22/10/2024)

A seven percent year-on-year increase in the number of company start-ups was recorded for the third quarter of 2024, including 11% growth in company start-ups in Dublin (2,645 in Q3 2024 vs 2,376 in Q3 2023)), according to the latest figures from credit risk analyst CRIFVision-net.

Other counties to see positive double-digit quarterly growth include: Longford (79%), Wexford (68%), Roscommon (34%), Sligo (34%), Westmeath (25%), Wicklow (22%), which all saw a strong increase in start-ups.

Amongst the other counties with large urban populations, Galway saw nine per cent quarterly growth, meanwhile Cork (-8%) and Limerick (-4%) saw a contraction in start-up growth.

Startups by Sector

Sectors including motor (+48%), real estate (+28%), manufacturing (+15%), and IT (+11%) all recorded double digit growth.

Only two sectors saw a quarter-on-quarter decrease in new startups; agriculture, hunting and forestry was down 10% and leasing contracted by 24%.

Hospitality (+1%) saw a minimal increase in start-ups, with insolvencies continuing to rise, further highlighting the challenges facing the industry.

Managing Director Christine Cullen noted:

"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 these impressive economic indicators, the view on the ground amongst many Irish business owners is more mixed, which is borne out of today's Q3 data. Startup figures are generally healthy, however, the rise in insolvencies points to a more complex business operating environment.

This week's 2025 Budget included a number of support measures for Irish business owners, including the E4,000 'power-up' grant. 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. Factors such as rising input costs, weak demand in certain industries, and tightening credit conditions remain key challenges."

Navigating the Current Housing Crisis

"As Ireland continues to grapple with the ongoing housing crisis, it's encouraging that the Government has acknowledged the urgency by allocating a record E6 billion in capital funding for housing in this week's budget. However, 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.

Rising material costs, labor shortages, and persistent inflationary pressures are making it increasingly difficult for many construction firms to remain viable, despite the growing demand for new housing.

Nevertheless, with sustained investment and strategic reforms, the sector has the potential to stabilize and contribute to meeting the housing needs of the country."