Business and company start-up growth slows in first three quarters of 2018 but insolvencies decrease by 23%

Dublin, October 15, 2018

The number of new business and company start-ups decreased by -7% in the first three quarters of 2018 (1 January—30 September).
The figures, published today by business and credit risk analyst Vision-net, a CRIF company, suggest that Ireland’s fast rate of business growth may be entering a more mature phase of growth.
Limerick was the only county in the top five to record an increase of more than +0.5% in the first nine months of the year, with company start-ups increasing by +15% (632 vs 549). Dublin, while the most popular county for new start-ups, recorded only a small increase of less than +0.5% (7,659 vs 7,635).
Conversely, insolvencies declined by -23% in Q1-Q3 2018 compared to the same period last year, indicating that established companies are maturing, able to service their creditors, and operating well in their markets.

Company start-ups
New business and company start-ups decreased by -7% in Q1-Q3 2018 compared to the same period last year (33,439 vs 35,911). In Q3 2018 alone, new business and company start-ups decreased by -10% on Q3 2017 (10,343 vs 11,520).

Q1-Q3 2018 company start-ups
Professional services start-ups increased by +7% compared to the same period last year (3,485 vs 3,263).
Construction start-ups increased by +8% (1,814 vs 1,683); related real estate start-ups increased marginally by +1% (744 vs 738).

Q3 2018 company start-ups
Professional services and social and personal services were the only two industries in the top ten to record an increase in start-ups (respectively, +3% (1,066 vs 1,035) and +16% (696 vs 602)).
Finance start-ups decreased by 6% (803 vs 858) and construction start-ups decreased by 4% (543 vs 565).
All of the top five counties for company start-ups recorded decreases. Dublin recorded the most company start-ups (2,475) but this was a -4% decrease on the same period in 2017. Limerick, ranked fifth, recoded the smallest QoQ decrease (-2%, 186 vs 190).

Insolvencies
Company insolvencies decreased by -23% in Q1-Q3 2018 compared to the same period last year (596 vs 777). In Q3 2018 alone, company insolvencies decreased by -9% on Q3 2017 (207 vs 228).

Q1-Q3 2018 company insolvencies

• Construction recorded a -25% decrease in insolvencies (89 vs 119), real estate a -45.5% decrease (60 vs 110), and hospitality a -36% decrease (51 vs 80).
• Wholesale and retail was the most insolvent industry in this period (106 vs 95, +12%)
• Insolvencies decreased by -25% in Dublin (246 vs 329), -18% in Cork (56 vs 68), -42% in Galway (40 vs 69) and -25% in Limerick (24 vs 32).

Q3 2018 company insolvencies

• Construction insolvencies declined by -32% QoQ (21 vs 31), by -32% in real estate (15 vs 22) and by -44% in hospitality (18 vs 32).
• Wholesale and retail was again the most insolvent industry (47 vs 26, +81%).
• Dublin was the most insolvent county, but insolvencies decreased by -12% QoQ (84 vs 95). Meath, the second most insolvent county, recorded a +229% increase in insolvencies (23 v 7).

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