The number of new companies established last year was the second-highest level in more than a decade, according to CRIFVision-Net.

A total of 23,384 start-ups were formed in 2024, an increase of 5.5% from the previous year, and there was a similar rise in sole traders and partnerships.

Only 2021, when 25,692 companies were incorporated as a post-pandemic backlog was cleared, has seen more start-up formations in the past 10 years.

The business support sector, which includes financial services, accounting, and administration services, accounted for one in five start-ups or 4,876 company formations.

CRIFVision-Net posited that the strong performance in the sector explains "Ireland's robust business ecosystem," with the abundance of business and financial support businesses in Ireland providing a well of expertise for start-ups to draw upon.

In 2024, the majority of industries experienced an increase in start-up activity. The strongest performing sectors were motor (+20%), real estate (+18%), transport, storage and communication (+17%) and IT (+14%) recording the highest startup growth year-on-year.

The 2,392 start-ups in construction represented a 3% increase compared to 2023, demonstrating ongoing demand for housing and infrastructure projects, while retail and wholesale were not far behind with 2,302 start-ups, up 7% on the previous year.

Agriculture (-18%), electricity, gas and water supply (-15%), leasing (-6%) and hospitality (-2%) recorded the biggest drop in new company start-ups in 2024.

A total of 16 counties recorded an increase in start-ups, led by Longford (+19%), Dublin (+11%), Galway (+10%), and Louth (+10%) while eight counties recorded decreases, including Kilkenny (-14%), Roscommon (-11%), Tipperary (-9%), and Monaghan (-4%).

In Dublin, there were 10,680 start-ups, and Dublin 3 (+40%) had the largest annual increase in start-up numbers ahead of Dublin 22 (+27%), Dublin 4 (+23%), Dublin 11 (22%) and Dublin 8 (20%).

In combination with Kildare, Dublin accounted for nearly half of all start-ups. Cork contributed 2,268 start-ups, accounting for one in every 10 start-ups,

The insolvency rate increased 25% year-on-year to 838, including companies that went through the SCARP process.

Within this period, the largest numbers of insolvencies were recorded in the month of December, with a total of 114 an increase of 43 compared to December of 2023. June was the least insolvent month with a total of 48 insolvencies.

The incoming government is planning to establish a small business unit within the Department of Enterprise as well as a cost of business forum, and there are also expected changes in VAT and PRSI.

“Robust start-up activity in 2024 demonstrates that Ireland remains an attractive place to do business,  With a 5.5% increase in company formations compared to 2023, 2024 recorded the second highest number of new companies in over a decade, underscoring the entrepreneurial spirit driving the economy," said Christine Cullen, managing director of CRIFVision-Net.

“The standout sector for start-ups activity was the business support sector, including financial services, accounting and administration services.

"The continued development of this sector, and the wealth of expertise available in Ireland is appears to be contributing to a business ecosystem that supports entrepreneurs and start-ups, creating a multiplier effect, strengthening and accelerating wider economic activity and ultimately job creation.

“The incoming government’s priority should be to introduce supports to ensure that the strong momentum in start-ups is maintained, to ensure we retain our position as a dynamic and resilient hub for domestic and international business operations.”

(Pic: Getty Images)