2022 has not been a great year for Irish startups. However, the past two months may indicate that there is reason for hope.
Irish start-ups hit a six-year low in 2022 after a 16% year-on-year decline in the number of new companies set up last year.
Credit analyst CRIFVision-net released figures today (January 30) showing that there were 21,637 new company startups registered in 2022. This is the lowest number since 21,018 recorded in 2016.
Included in this alarming statistic is the fact that the number of bankruptcies has also increased by 17% over the year compared to 2021. 105 start-ups will also bankrupt him in 2022, up nearly 50% year-over-year.
CRIFVision-net blames economic uncertainty brought on by rising inflation and the cost of living crisis for the latest trends in the Irish startup scene.
Christine Cullen, Managing Director of CRIFVision-net, said:
In the first half of 2022, 11,167 new companies were formed between January and June, with a large number of new companies being formed, but July was the worst month for new registrations. July he followed in May, making it the perfect month for registering new startups.
However, Karen believes there are reasons for hope that the situation could improve.
“The bright spark, however, is that despite a 16% decline in startups in 2022, they have seen consecutive monthly increases in the last two months of the year. It suggests that you are willing to take on new ventures,” she said.
“This, combined with recent government budget surpluses and net growth in exports, suggests modest Irish economic resilience in 2023.”
Female directors have also increased slightly, accounting for over 18% of Irish startups in 2022.
Leitrim, Mayo and Leersch emerged as the only three counties to record growth in the number of start-ups, while Dublin retained the title for having the highest number of start-ups based there. .
The wholesale and retail sector recorded the biggest decline in new business start-ups, followed by manufacturing, fishing and computers. Extraterritorial organizations showed the biggest gains, followed by agriculture, hotels and restaurants, and utilities.
“The decline in sectors traditionally strong for the Irish economy, such as manufacturing and leasing, suggests that rising costs during this period are likely to remain an immediate challenge,” Cullen added. .
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