47% rise in number of Irish tech start-ups

Thursday 01 May 2014 18.28
The number of Irish tech start-ups rose 47% in April.
The number of Irish tech start-ups rose 47% in April.

A 47% rise in the number of Irish tech start-ups was recorded in April 2014 compared to the same month last year, according to new figures from Vision-net.ie.

Christine Cullen, Managing Director of Vision-net.ie said the increase indicated "positive growth within our indigenous tech sector."

"Ireland is the second largest exporter of ICT services in the world, an industry that contributes €72 billion to the national economy annually. Presently, however, only 3% of that revenue is generated by Irish companies.

"This will serve to further cement our reputation as a global leader in IT and create more relevant jobs at home," said Ms Cullen.

The IT and tech sector was the fourth most popular industry for new company start-ups in Ireland, following professional services; social and personal services; and wholesale and retail. Together, these four industries accounted for 52% of all new company start-ups.

There was also a 24.5% increase in the number of company incorporations, with 1,504 in April this year as opposed to 1,208 in the same month in 2013.

In March 2014, 353 judgments worth €15.7m were awarded to creditors for non-payment of debts. 254 of these, worth €12.8 million, were awarded against consumers, with an average of €50,307 per judgment. This figure represents a 17% drop in the number of consumer judgments on the same month of last year.

Wholesale and retail insolvencies accounted for a fifth of industrial insolvencies in April this year, a rise of 24% year-on-year. The second and third most insolvent industries in April were professional services and real estate, accounting for 16.6% and 13.8% respectively.

The construction sector showed the most improvement in this regard, with a 41.4% reduction in insolvencies on the same month last year.

Over half of insolvencies were recorded in Dublin, followed by 5.5% in both Meath and Kildare. No insolvencies were recorded in Laois, Sligo, Offaly, Monaghan or Donegal.

Figures indicate that 66% of hotels and restaurants are at "high risk" of collapse. Furthermore, 61% of construction and 53% of wholesale and retail businesses face similar high risk.