The number of new businesses starting up in 2009 fell 9 per cent compared with the previous year, a new repot showed today.
The Bank of Ireland Business Start-up Barometer showed 36 new firms formed every day in 2009, a total of 13,327 compared to 14,753 in 2008. Almost half of the new businesses were registered in Dublin.
The 9 per cent fall was less than anticipated, the report said, but the number of companies dissolved in the year was 16 per cent higher.
The motor sector saw the largest increase in dissolutions, up 42 per cent from 2008.
The largest decline in new start-ups was seen in the services sector, where 3,500 new businesses were registered. Finance, insurance and real estate start-ups also saw a decline, dropping 37 per cent as a sector to just 1,176 new firms. The number of dissolved companies in the sector rose by 39 per cent to 1,698 during the year.
New company registrations were static on a quarter by quarter basis. The highest numbers of company dissolutions were seen in the first quarter, but have steadily declined since then. The number of companies who had a liquidator appointed during the year was up 76 per cent from 630 in 2008 to 1,110. The construction industry accounted for almost 22 per cent.
Bank of Ireland's head of small business banking Damian Young said 2009 was a chellenging year, but said 2010 should be viewed with some optimism.
"The faster pace of recovery in Europe, the US and other countries offers growth opportunities for export orientated start-ups. Indeed, the stabilisation of Ireland's finances should help to instil more consumer confidence and business activity in 2010," he said.
"In addition, the government's extension to its corporation tax exemption for start-ups makes 2010 an attractive year to start a business."
