Deirdre O Meara 
The Irish start-up community has taken a hit in the past year, with new company start-ups hitting their lowest number since 2016. According to figures from CRIFVision-net, the number of new business establishments dropped by 16% compared to 2021 and the number of firms entering bankruptcy increased by 47%.
The Cost-of-Living Crisis
Inflation and the cost-of-living crisis have had a major impact on start-up activity in Ireland. As living costs increase, it becomes more difficult for entrepreneurs to make ends meet while they are getting their businesses off the ground. In addition, there is less disposable income among consumers, which can lead to reduced demand for goods and services provided by small businesses.
The Impact of Brexit
Brexit has also had an impact on Irish businesses. In particular, start-ups that rely on exports to the UK market have been affected by changes in tariffs and regulations.
This has made it harder for these companies to reach their target markets as well as increased costs associated with doing business overseas. Additionally, uncertainty surrounding future trade arrangements between the UK and EU could further complicate this issue.
Reviving Start-Ups in Ireland
Despite the challenging environment for new businesses in Ireland, there are some encouraging signs indicating potential recovery. For example, two consecutive months of growth were recorded in November and December 2021 suggesting that confidence may be returning to the start-up sector.
To keep this momentum going, policymakers need to focus on creating an environment that is supportive of entrepreneurs and small businesses. This includes ensuring that access to finance is available at reasonable rates and providing tax incentives for those looking to launch or grow their business ideas.
Additionally, measures such as reducing red tape and helping young people acquire skills needed to succeed in today’s digital economy should be taken into consideration in order to ensure the long-term success of Irish start-ups into future years.
Conclusion
New company start-ups hit a six-year low last year due primarily to inflation and the rising cost of living issues impacting appetites for starting new businesses across Ireland. Despite this concerning trend however, there were also some encouraging signs with two consecutive months of growth recorded towards the end of 2021 suggesting renewed confidence within the sector potentially paving the way for more positive news ahead for aspiring entrepreneurs here in Ireland looking for success with their business ventures over coming years ahead.
