Irish start-up levels hit a six-year low in 2022

The number of new start-ups registered in Ireland over the past year has fallen to its lowest level since 2016, according to the latest data from CRIFVision-net.

A total of 21,637 new companies were registered in 2022. This was slightly higher than 2016’s figure of 21,018.

The number of newly registered start-ups last year was also 16 percent below the 2021 level.

“Start-ups faced a different economic environment in 2022. A combination of inflation, high interest rates, geopolitical uncertainties and energy insecurity resulted in an uncertain economic environment,” said Christine Cullen, Managing Director of CRIFVision-net.

While the first half of the year saw a strong start in new business start-ups, July saw the fewest start-ups over the course of the year.

Bankruptcy numbers rose 17 percent to 592 in 2022, while a total of 105 startups filed for bankruptcy in 2022. This reflected a 47 percent increase from 2021 as a growing number of businesses grappled with rising costs.

Women led around 18 percent of the start-ups registered in 2022, unchanged from the previous year.

The number of start-ups in the wholesale and retail trades also fell by 43 percent over the course of the year. The number of startups focused on manufacturing and leasing fell by 6 and 14 percent, respectively, in 2022.

“Declines in traditionally strong sectors for the Irish economy such as manufacturing and leasing suggest that this period of rising costs is likely to remain challenging for some time to come,” added Ms Cullen.

However, some sectors recorded an increase in start-up activity. The number of agricultural start-ups increased by 14%, the number of newly opened hotels and restaurants by 6%.

Dublin has been home to the most start-ups in Ireland, with 9,433 of the total 21,637 in the capital. Sligo saw the largest percentage drop in new businesses last year, registering a total of 161 new start-ups. This was a 23 percent decrease compared to 2021.

“One bright spot, however, is that despite a 16 percent drop in start-ups in 2022, the last two months of the year saw a steady month-on-month increase, suggesting there are many companies and entrepreneurs willing to invest in new ventures,” concluded Ms. Cullen.