Rising costs trigger 16% decline in business start-ups as economic uncertainty persists

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Figures by credit risk analyst CRIFVision-net point to inflationary pressures, but optmism is high despite deteriorating outlook

“The combination of the rising cost of living, soaring energy prices and borrowing costs has created significant economic uncertainty that has resulted in another decrease in start-up registrations in Q3,” Christine Cullen, managing director of CRIFVision-net, said.

“Decreases in bellwether sectors for the Irish economy like real estate, agriculture, manufacturing and construction suggest that this period of cost increases will likely remain a challenge for some time,” she said. More than half of SMEs surveyed said they expect their turnover to increase over the next year, while 38 per cent say their turnover will stay the same. Just 9 per cent of companies expect a decline in sales. An overwhelming 89 per cent say they are planning to invest in their business over the coming 12 months, with just 11 per cent saying they have no plans to invest.

 

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