Issue 631 (Week ending 15/05/2024)

In 2023, May saw over 2,500 new company start-ups, an impressive number when compared to March and April's 2,000 each.

The ebb and flow during the first half of 2023 indicated a nuanced response to market conditions. The slight fluctuations in January (1,800 company start-ups) and February (1,700 company start-ups) suggest a measured approach from the market. March and April's stability may indicate a period of consolidation or strategic planning. The subsequent rise in May aided in revealing a market that responds dynamically to external stimuli.

This resulted in a weekly average of company start-ups in May 2023 of 565. In contrast, this past week has seen only 475 new company start-ups, a 19% decrease. There are a number of factors that can flag why there is a drop this year in comparison to last, with regards to company start-ups.

The first potential cause of such a drop is the low unemployment rate, leading to constraints on man-power and resources.

The second indicator is the prevailing housing crisis, with people seeking to establish or expand their business operations being deterred, as there are less high-skill workers being retained.

A third influence is the current state of global politics, which may impact people to feel a sense of unease, and be less inclined to take on the potential instability of starting up a new business.

In Ireland, the benefit of start-ups is that they create local jobs, and stimulate the community's economy. In 2023, more start-ups were appearing outside of major urban hubs, and 2024 may see this trend continue.

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