Over 10,700 new start-ups recorded in first quarter of 2014

Monday 31 March 2014 18.28
An average of 127 new start-ups each day of the first quarter, Vision-net figures show
An average of 127 new start-ups each day of the first quarter, Vision-net figures show

A total of 10,741 new business and company start-ups were recorded in the first quarter of this year, up 6% on the same time last year. 

This equates to an average of 127 new start-ups each day, according to credit and business risk analyst, Vision-net.

Vision-net also said that there was a 23% drop in the number of insolvencies in the first quarter compared to the same time last year. 

It noted that while the construction sector had the most insolvencies over the three months at 18%, the total number of them dropped by 25%. The number of construction start-ups increased by 29%, it added.

Receiverships in the first quarter of this year fell by 10% over the same time last year while creditor meetings have dropped by 30%.

Vision-net said the hospitality sector continues to be the most "at risk" sector, with 66% of businesses at "high risk" of closure, followed by the construction sector at 61%. 

"The culmination of the last three months once again shows that the Irish economy appears to be taking a positive turn into recovery. Insolvencies, receiverships and creditors meetings have all fallen," commented Christine Cullen, managing director of Vision-net

"The large number of new business start-ups, combined with the highest number of company incorporations in the first quarter since the crash, indicates that businesses are operating in a less hostile environment, where greater access to credit is improving,' she added.

Meanwhile, new figures show that eight companies have emerged from examinership since January, retaining 410 jobs between them.

The examinership index, compiled by accounting firm Hughes/Blake, said that seven of those eight companies were small and medium enterprises. 

The eighth was the construction firm SIAC and it accounted for 219 of the 410 jobs at the companies which have emerged from examinership.

Examinership offers court protection to debt-laden firms from their creditors for a limited period of time provided it can be shown that the underlying business is viable if debt is written down and new investment secured.