Latest Bank of Ireland Barometer shows 13,327 new business start-ups in 2009 – a 9% decrease from 2008

Bank of Ireland Business Banking today (22 January 2010) issued its latest Business Start-up Barometer that tracks the number of new businesses starting up in Ireland.

Key Findings:

• 13,327 new business start ups formed in 2009, 36 per day
• 9% decrease in business start-ups – less than anticipated
• Almost half of all new start-ups registered in Dublin – 6,129
• 16% year increase in dissolved companies numbers to 12,000

Bank of Ireland Business Banking today (22 January 2010) issued its latest Business Start-up Barometer that tracks the number of new businesses starting up in Ireland. There were 13,327 new businesses formed in 2009, or 36 per day, which showed a 9% decrease when compared to 14,753 new business formations in 2008. Nearly half of the start-ups, 6,129 were registered in Dublin.

The services sector saw the largest number of start-ups in 2009, with 3,500 new businesses registered.

Given the decline in the commercial and residential property markets, there was a decrease in the number of new business formed in the associated industry sector of finance, insurance and real estate. As a sector it had a 37% drop in new company registrations when compared to 2008, or just 1,176. It also showed a spike in the number of dissolved companies, up in 2009 by 39% to 1,698.

However, overall new business activity fell by 9% year on year. The number of business dissolutions in 2009 has increased by 16% on 2008 figures, with the motor sector seeing the largest increase in dissolutions, up 42% from 2008.

Dublin continues to record the highest number of new start-ups, registering 46% of the annual total. The regional break down is a follows:

2009 saw an arrest in the dramatic decline in new business activity, experienced in 2008. There is a stabilisation of sorts in the year on year percentage differences across all sectors.

Damian Young, Head of Small Business, Bank of Ireland Business Banking, commented: “2009 was a challenging year with a fall off in new business start-ups, particularly in the first half of the year. This slowed significantly in the second half and resulting in a 9% year on year drop. As expected, the pick up in the latter part of the year can be partly attributed to the lead in time for establishing new businesses, with many people opting for entrepreneurship as an employment option. 2010 should be viewed with some optimism. The faster pace of recovery in Europe, the US and other countries offers growth opportunities for export orientated start-ups. Indeed, the stabilisation of Ireland’s finances should help to instil more consumer confidence and business activity in 2010. In addition, the government’s extension to its corporation tax exemption for start-ups makes 2010 an attractive year to start a business.

“Going into 2010, there are some signs of optimism. Many businesses have taken the necessary action to reduce costs and realign their business models. Company dissolutions, although at the highest level in 2009 are declining quarter by quarter. The outlook for 2010 is that overall start-up activity will remain at between 13,000 and 15,000 new companies being formed this year.

“We have seen through a number of initiatives during 2009, such as Show your Business Week, that there is still a vibrant and passionate entrepreneurial spirit evident that we need to continue to foster and support in the coming year. In the last number of weeks, Bank of Ireland has approved new lending facilities for developing and start-up businesses for ventures such as health and fitness, logistics, web development, food businesses and environmental support. On average, over €2m each month was provided to small/micro businesses in early development stages in 2009, and we anticipate this trend will continue in 2010”, concluded Damian Young.

On a quarter by quarter basis in 2009, new company registrations remained remarkably static, ranging in numbers from 3,250, and 3,400.

The highest numbers of company dissolutions were recorded in Q1 2009, but since then, the number of company dissolutions has been on a downward trend, down by 7%, 8% and 9% respectively.

2009 saw a marked increase in the number of companies who have had a liquidator appointed, up 76% albeit from a small base to 1,110, from 630 in 2008. The construction industry accounted for just under 22% of that figure.

Year on Year Business Start Up Activity – and Q4 numbers

Ends

Contact:
Anne Mathews,
Media Relations Manager,
Group Corporate Communications,
Bank of Ireland
Ph. 01 – 604 3836 or 087 246 0358