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THERE WAS AN increase of 19 per cent in insolvencies across all sectors of the Irish economy in August with 108 cases recorded, compared to 91 in the same month last year.
Figures released this morning from business risk analysts Vision-net.ie show that 45 per cent of company insolvencies recorded were in Dublin, followed by 19 per cent in Cork and 6 per cent in Galway.
However, there were some encouraging signs amid the figures: manufacturing, for instance, experienced 50 per cent fewer insolvencies last month, compared to August 2013 (just 5, compared to 10 last year).
In the motor industry, there were no insolvencies at all last month.
Starting out
There was even more good news under the ‘company start-ups’ heading… 983 companies were formed last month — up 8.4 per cent on the same month last year (amounting to 38 start-ups every day).
Industries badly affected by the recession experienced positive growth, with construction start-ups rising 30 per cent (82, compared to 63 last year).
The number of finance start-ups also grew, with 53 companies founded compared to 21 last August. Real estate start-ups increased too — with 44 recorded, compared to 31 in 2013.
Vision-net’s Managing Director Christine Cullen said the increase in finance start-ups could be indicative of greater liquidity in the lending market, “particularly in the mortgage market”.
Overall, the figures contained good news for sectors ”hit particularly hard by the recession” she said.
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Best wishes to the 1000 new companies, this is what is needed to get Ireland out of recession and into solid growth. Just don’t make the mistakes made by your predecessors; i.e. taking out a mortgage on your business to invest in property! Rent your premises, leave property speculation to property speculators and focus on minding your own business.
Interesting photo, I’ve never seen a topping out ceremony in Ireland. I thought that was just a North American tradition.
Correction: E=MC^2
The finance companies were probably a PO box number, the same company directors and address as several other companies, has one desk in the office and a HQ in the Cayman Islands.
Oh how little do the thumber downs know.
Dunne started 100 of them, Quinn started 100 of them, P Flynn’s son in Law started 100 of them, Ex NAMA staff started 100 of them, returning Bankrupt Developers started 100 of them, etc etc all getting grants and other support fron their friends in the Banks and in government.
I heard that they were all set up by a man who works in a Jobs Bridge prog.
He just spends all day setting up companies for Nama and they are hiring people to pretend they are real jobs but they have them playing table tennis all day.
At least my fanciful story was fleshed out a bit.
Half of the new companies are probably self employed and farmers, just setting up companies so they can pay corporate tax rates at 12.5% instead of 48%.
God but that is some desperate rubbish.
I know of dozens of self employed who have gone down the corporation route for same said tax reasons.
What sectors are the new companies in? I suspect the majority are construction related…. while its good news its hardly going to dig us out of our financial problems long term…
Actually, it’s progress like this that will. And yes, construction. Because that’s where the demand is.
You don’t establish a business in a sector where there is no demand…
My point was that having 000s of new construction companies is a response to the current demand, which if what many are saying is true, is another bubble…. and thus is not sustainable long term. Obviously we need new companies and new jobs but if most of those newly employed are back on their arses in a couple of years, we simply wont have made progress…. thats all…
Just to reach a sustainable construction sector we need to double or even treble our current mini construction sector.
People say there is a bubble in Dublin, there certainly is a housing shortage, driven by too many people with serious deposits and wages chasing a very small no. of family homes.
Either way I can’t see family homes in nice areas in Dublin decreasing again. The demand is there and their supply in finite. Suburbanites that do well will want to move closer in for ease and lifestyle etc.
We do need to build more houses to make sure that house prices stay reasonable.
High house prices destroy economic growth and competitiveness.
Spread growth around the country instead of trying to fit everyone in to 60 mile radius of Dublin.
That will only end in disaster and feeds massive property prices in Dublin city and wasted hours commuting in traffic and destroyed productivity.
You also have to bear in mind that our reliance on once off property driven revenue left us in the shite. While once off property revenues will obviously increase as demand grows, we now have a sustainable source of income through property tax and water charges…
We need more houses in the Dublin area but Ireland isn’t a command economy. The government can’t just spread growth around the country unless they use huge and constant dollops of subsidies.
Companies want to locate where they have the pick of the talent which is why globally cities are the drivers of growth. Particularly for specialized exporting companies they need to go where they can attract and access the deepest pool of human capital. The fact that human capital is the most important thing in a modern service economy demands we allow cities to grow.
There are those driven entrepreneurs who will build a business in their local area through sheer force of will but they are unusual. There are parts of the domestic economy which isn’t so skills driven and can locate in other cheaper areas.
But Dublin is going to be the driver of growth and we need to plan accordingly. It’s not like Dublin is a mega city with serious problems. It’s a small and sprawling city, we could triple the population handily enough without issue if done right.
Shell games.
This is great news for the economy and more so Ireland get off the dole and get a job
I dont think it means anything other than hope for the economy. Most businesses dont last more than a few years, and its as easy to set up a company as a website really. I wish them all huge success…exporters will do best!! Statistically about one of them should survive 5 years, then maybe the economy will benefit in real terms…
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