Spike in new finance, construction firms

THE finance and construction sectors saw dramatic increases in the number of new companies formed last year.

The numbers may be a signal of recovery in sectors that were among the worst hit after the crash or, potentially, a marked return to boom-era trends.

Across all sectors an average of 61 companies were formed every day last year, according to Vision-net’s 2018 Annual Review.

That means 2017 surpassed the previous record of 21,145 company start-ups formed back in 1998.

In total, 22,354 companies were registered in 2017.

The data shows a majority of new companies formed were in just four sectors – professional services industry, finance, construction and real estate.

Agriculture also posted significant year-on-year growth.

Traditionally big employers like retail and hospitality lag, however.

“Despite the continued uncertainty surrounding Brexit and the Border, the national business community has remained productive and innovative,” said Christine Cullen, Vision-net’s managing director.

The latest data shows a 17pc increase in businesses being created in finance, the second most popular industry for new start-ups. There was an 18pc spike in the number of new construction firms.

Dublin continues to attract the lion’s share of new companies, accounting for 46pc of all start-ups. Cork is the second most popular location, with 10pc of new companies, followed by Galway and Kildare.

Despite a buoyant economy, around three businesses a day became insolvent last year, up 3pc from the previous year.

Just over 1,000 insolvencies were recorded in Ireland in 2017.