Issue 704 (Week ending 08/10/2025)

The continued emergence of new firms across multiple sectors reflects resilient confidence in the Irish economy, with Q3 data showing strong entrepreneurial momentum. Yet this optimism contrasts with a rise in commercial judgments, signalling mounting financial pressures and persistent uncertainty in the post-tariff environment.

Speaking on the Q3 figures, our Managing Director Christine Cullen noted: "An 11% year-on-year rise in company startups in Q3 2025 is a clear signal of entrepreneurial confidence across Ireland. This demonstrates that, despite recent tariff-related pressures, Irish businesses remain ambitious and forward-looking."

Significant Rise in Commercial Judgments Reflects Growing Legal Activity

Commercial judgments have increased by 30% compared to the same period last year, reaching a total of 1,428 cases. The overall value of these judgments has also risen, with E37.4 million awarded to companies in the first nine months of the year, marking a notable increase on 2024.

This sharp uptake points to tighter credit conditions and reduced tolerance for late payments, with companies becoming more assertive in pursuing debt recovery. It suggests a clear shift away from forbearance as businesses take to the courts more frequently to resolve disputes.

Corporate Insolvencies

While insolvencies have remained broadly consistent with 2024 levels overall, patterns within the data highlight emerging sectoral challenges. Retail and hospitality continue to account for a significant share of insolvencies, underlining the impact of inflation on consumer-facing businesses.

Furthermore, with the median age of insolvent companies at 11 years, it is clear that many established businesses are now under severe strain. Rising operational costs, wage pressures linked to the cost-of-living crisis, and a tightening credit environment all remain significant headwinds.

Navigating the Ongoing Battle with Tariff Uncertainty

However, the rise in commercial judgements underscores the ongoing challenges businesses face,particularly in the wake of recent tariffs. Firms navigating imported goods, supply chain costs, or cross-border trading are experiencing heightened pressure, which is reflected in increased insolvency and debt enforcement activity.

These figures reinforce that timely payments, robust and cashflow management, and support mechanisms remain critical to help companies navigate challenging economic conditions, particularly in sectors impacted by tariffs and supply chain disruptions.

Christine Cullen adds: "Looking ahead, the upcoming 2026 Budget will be crucial. Measures supporting SMEs and startups such as tax credits, targeted grant schemes, or initiatives to mitigate the impact of tariffs could reinforce confidence and help sustain growth across sectors."