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.”