Start-up activity has remained resilient through the Covid-19 downturn despite a poor second-quarter, according to figures compiled by credit risk analyst CRIFVision-net.
New company registrations fell just 4pc in 2020, to the lowest level since 2016. Nearly 22,000 companies registered for the first time last year, compared to slightly more than 21,000 in 2016. Start-ups hit a low point in April, when the economic impact of the pandemic was strongest, before rebounding in the second half of the year.
The figures reveal that despite the Covid-19 economic downturn, start-ups have remained more resilient when compared to the 2008 recession when figures decreased 22pc year-on-year.The final quarter of the year proved particularly strong, with an increase of 20pc in new registrations compared to Q3. In total, 6,583 new companies were registered in Q4, a 23pc increase over the same period in 2019, suggesting a strong recovery in activity this year.
Insolvencies for 2020 were down 10.7pc compared to 2019, with 570 for the year. CRIFVision-net attributed this decrease to the prolonged closure of courts during the Covid-19 pandemic.
Irish Independent, 18 January 2021