- by VisionNet on 01/05/2012
Each day last month, 118 companies and business start-ups got off the ground, according to the latest figures from Vision-net, Ireland's leading business and credit risk analyst.
Vision-net's analysis recorded 3,080 company and business start-ups between April 1 and 26 - up 10% on 2011.
Of these, 2,018 were registered business names while 1,062 were company incorporations.
However, Vision-net's figures also show continuing weaknesses in the trading environment, with 149 companies - or six each day - declared insolvent last month.
That figure is down 17% on same period last year.
Of the companies declared insolvent, 96 were liquidated, 50 entered receivership and examiners were appointed in three cases.
Liquidator appointments are down almost one-fifth on last year while receiverships have dropped by 17%.
Between April 1 and April 30, 115 companies held meetings of creditors - down 22% on the same period last year - owing over €40 million.
One quarter of new company incorporations last month were in the professional services sector.
However, this sector also accounted for 24% of company closures, meaning no growth was experienced.
The sectors recording the least number of new company incorporations were motor and real estate, each taking a 3% share.
Of 11,156 companies Vision-net surveyed, 55% were deemed to be at high risk of collapse, 14% were deemed medium risk, and 31% were in the low-risk category.
Vision-net's analysis shows that, last month, 301 registered consumer and commercial judgments worth €14.5 million were awarded in the courts, with banks awarded €8.6 million and the Collector General awarded €3.7 million.
Christine Cullen, Managing Director of Vision-net, said the figures for last month show that, while entrepreneurs are willing to get new businesses off the ground, the domestic economy is still characterised by collapsing companies and challenging trading conditions.
"The number of new companies and business start-ups is high and it bears out our reputation for entrepreneurship which, according to the 2010 Global Entrepreneurship Monitor, is among the highest in Europe."
"However, much is this is attributable to necessity-driven entrepreneurship - people who start companies because they cannot get a job anywhere else - and Vision-net's advice is to research the marketplace using proper credit checks and business intelligence before embarking on new ventures."
"Already established businesses across the sectors can save jobs and money and identify new growth opportunities if they make use of reliable market intelligence in making informed trading decisions," said Ms Cullen.
For every Irish company that gets off the ground another one collapses, according to Vision-net, Ireland's leading business and credit risk analyst, whose latest figures reveal that five firms failed each day last month.