Issue 127 (Week ending 22/05/2012)

Our data shows that the Austerity measures are having a negative effect on business start-ups and entrepreneurial activity and there is a need for stimulus.

So far this month the good news is that just over 50 Irish Companies were formed every single working day despite the challenging trading conditions.

922 companies have been formed in Ireland this month and over 5,700 have been incorporated in the year to date despite challenging trading conditions. However, company closures for the year are currently just below 6,300 meaning that we are seeing a slide in the level of trading entities within the State.

A breakdown of the industries most affected by closures is below:

Company Start-Ups v Closures 2012

(Worst affected industries)

As you can see, the above industries have accounted for almost 1,100 company closures already this year. For every 1 start-up in the construction and real estate sectors there were 2 and 3 closures respectively and the manufacturing industry has 42% more closures than start-ups this year.

On a more positive note a number of industries have grown in size this year. Between them, the social & personal services, agriculture, health & social work and IT sectors have added 616 new companies in 2012.

As you can see, existing economic policies are conducive to start-ups and entrepreneurial efforts. However, existing companies are having to close their doors in ever increasing numbers.