Latest Bank of Ireland Barometer continues to show limited activity in Business Start Ups in Q2 2009

Key Findings:

• 3,258 new companies registered in Q2 2009, down 3.3% on Q1 2009 (3,369)
• Dublin showing the most significant green shoots registering almost 45% of the quarterly total with 1,455 new company registrations, compared to 1,433 in Q1 2009
• 6% decrease in company dissolutions nationally in Q2 2009 (3,243), compared to Q1 of this year (3,451), with only six counties showing an increase in company dissolutions

Bank of Ireland issues its latest business Start-up Barometer today, 17 July 2009, which tracks the number of new businesses start-ups in Ireland on a quarterly basis.

The total number of new company registrations for Q2 2009 was 3,258, down 3.3% on Q1 with 111 fewer new companies being formed when compared to the Q1 figure of 3,369. The total number of new company registrations year to date is 6,627, down 19% when compared to the same period in 2008, when 8,207 new businesses were established.

Dublin continues to record the highest number of new business start-ups, registering almost 45% of the quarterly total, or 1,455 new company registrations, an increase of 22 new companies established in the capital, compared with the last quarter. However, this figure is still down from the same period last year when 1,775 were formed. On a regional level, Tipperary showed the most marked improvement with 97 new companies being formed in Q2 2009 as compared to 76 formations in Q1 this year. It also showed a noticeable increase in new business start-up from the same period last year when 72 new companies were formed.

The total number of dissolved companies for Q2 2009 was 3,243, down 6% or by 208 on Q1 from a figure of 3,451. However the number of dissolved companies year to date is 6,694, up by 30% from 5,131 companies dissolved during the same periods (Q1 and Q2 2008) last year. The total number of dissolved companies in Q2 2008 was 2,263.

There was a national decrease in company dissolutions which fell by 6% in Q2 2009, compared to Q1 of this year, which was reflected across the country, with only six counties showing an increase in company dissolutions in this quarter. Galway, Monaghan, Roscommon and Westmeath featured the highest number of company dissolutions. Only three counties featured a decrease in dissolutions when comparing Q2 2009 and Q2 2008. These are Longford, Waterford and Carlow.

Damian Young, Head of Small Business, Bank of Ireland, commented: "The slow down in new business start ups in the first half of 2009 is reflective of the challenges facing all businesses in the current environment. However, history has demonstrated the resilience of Irish businesses and the ability for new businesses to be successful when starting in a downturn. We expect that similar levels of new businesses will be seen in the second half of the year, but we are also noticing a marked increase in the number of people thinking of establishing their own venture. In the first six months of this year, more than 1,000 customers have registered for our Business Start-up training, demonstrating an appetite and interest in new businesses".

The Manufacturing sector showed the greatest percentage increase in the number of new business start-ups during the period, with a 23% increase in new businesses registrations, or 249 new companies being formed, compared with 201 in Q1 2009. This figure falls short of the number of business established during the same period last year, when 262 companies were formed in the sector.

The Construction industry continues to see the greatest fall in new business activity, with a 14% decrease in business start up activity in Q2, compared with Q1. However there was a 16% drop in construction company dissolutions in Q2 compared with Q1, though this figure still represents 502 companies.

Ends

For media queries contact:

Cora Whyte
Group Communications
Bank of Ireland
Tel: 01 604 3324
Mob: 086 8102807

Year on Year and Quarterly New Company Registration figures broken down by county

Year on Year and Quarterly Company Dissolution figures broken down by county