New start-ups hit four-year low

THE number of new company start-ups in Ireland fell to a four-year low in 2020 as the pandemic hit entrepreneurial activity.

The 21,924 start-ups registered last year was 4% down on 2019 and the lowest figure since 2016 (21,018), according to figures from credit risk analysis company CRIFVision-net.

The 1,075 businesses registered in April, when Ireland was in the midst of the first Covid-19 lockdown, was the lowest monthly tally since December 2012.

While the start-up activity dropped in 2020, the fall was not as severe as the 2008 recession, when the number of new businesses registered fell by 22% on 2007.

Activity also has been trending upward since June last year.

The final quarter of 2020 recorded an increase of 20% in new registrations compared to the previous quarter.

The 6,583 companies registered between October and December represented a 23% increase on the same quarter in 2019.

The insolvency rate for 2020 was actually down almost 11% compared to 2019, with 570 insolvencies for the year.

However, this decrease has been attributed to the prolonged closure of courts during pandemic.

Christine Cullen, managing director of

CRIFVision-net, said given the unpredictable nature of the Covid-19 pandemic, it is difficult to measure the full economic impact of restrictions and lockdowns.

‘However, as we approach almost a full year since the first case of Covid-19 was confirmed in Ireland, there is a lot that we can learn in terms of trends and changes,’ she said.

‘The impact of prolonged closures and restrictions on businesses has been well documented over the course of the pandemic and, while restrictions are important now, we must ensure that we are simultaneously developing a sustainable environment in which businesses can recover.’