The number of new Irish start ups reached an all time high last year

The boom is once again back, baby! A new report has shown that a whopping 25,695 start-ups were registered in Ireland in 2021 - the highest figure of all time.

Furthermore, this figure is a 20 per cent increase on the number of start-ups registered in 2020, and a 13 per cent increase on the year 2019, meaning innovation in the country has exceeded even pre-pandemic levels.

The second quarter of 2021 saw the largest number of start-ups pop up with 7,600 popping up between April to June. The single largest month however was March which saw 2,715 Irish start-ups born.

The industry leading this spike in start-ups was the legal, accounting and business sector which contributed a total of 4,592 start-ups in 2021 - up 4 per cent from the previous year.

The financial intermediation sector enjoyed a massive 27 per cent growth, accounting for 4,195 start-ups, wholesale and retail grew by 55 per cent (3,669 start-ups), whilst construction also saw a 19 per cent boost accounting for 2,470 new businesses. These figures are a brilliant testament to the resilience of these industries considering the many adverse conditions they faced in the pandemic.

The only sector which saw a decline in start-ups last year was the community, social and personal activity industry. The sector saw 1,834 start-ups born, down 26 per cent since 2020.

Naturally enough, the capital Dublin was the centre of this innovation, accounting for 11,815 start-ups last year, an 18 per cent increase from 2021. However, Cork (+17 per cent) and Galway (+15 per cent) also saw significant growth, contributing 2,504 and 992 start-ups respectively.

Mayo sadly saw a slight dip in start-ups, accounting for 330 which was down 2 per cent year-on-year.

Commenting on the annual figures, Christine Cullen, managing director of CRIFVision-net, said: “2021 was a record-breaking year for new company start-ups, marking a significant turning point for the Irish economy’s Covid-19 recovery.

“If we look back to 2020, the contrast in start-up activity was stark. 2020 was the lowest point for the number of new-start-up companies in Ireland since 2016, illustrating the prolonged impact of Covid-19 lockdowns on the Irish economy.

“However, 2021 painted a much more positive picture. Achieving the highest number of new company start-up registrations on record is a clear demonstration of the resilience, determination, and hard work of the Irish SME community. Moreover, it gives reason for optimism as we look to the year ahead.

“The Irish start-up community is buoyant, but the next twelve months will not be without their challenges. The increase in dissolved companies this year serves as a reminder of the challenging environment in which businesses are currently operating, and we must ensure that there are continued supports available to protect new companies and promote growth and development.”

Topics: Ireland

Gary Grimes