Belfast Telegraph

A third of Republic firms don't last five years: report

One out of every three new businesses in the Republic folds within five years, according to new research into survival rates
One out of every three new businesses in the Republic folds within five years, according to new research into survival rates

By Shawn Pogatchnik

One out of every three new businesses in the Republic folds within five years, according to new research into survival rates.

The findings, contained in an analysis of the Republic's business activity in 2017, document the difficulties of sustaining a firm from birth to maturity.

The Central Statistics Office (CSO) report found that of 15,080 new enterprises formed in 2012, only 9,979 remained in 2017, a 66.2% survival rate.

It said 1,824 firms had failed within one year, 3,388 by 2014, 4,149 by 2015 and 4,945 by 2016.

Births and deaths due to mergers, takeovers, break-ups or changes in activity all were excluded from the CSO data.

The report illustrated the Republic's rebound from the crash years, with steady growth in foundation of new businesses from a 2013 low point of 13,824 - a year when 18,287 firms closed down - to a gain of 22,241 new firms in 2017.

While the high death rate of firms produced job losses, these were proportionately less steep, reflecting job growth at surviving enterprises and a high mortality rate among sole traders. For example, firms founded in 2012 employed 18,606 at the start. Five years later, 33.8% of the firms were gone but the number of associated jobs fell by 29.9% to 14,151.

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The CSO took a longer-term view of positions created and killed off during the years 2012 to 2016, with employment "deaths" at all failed enterprises peaking at 22,584 jobs in 2013.

Belfast Telegraph

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