Published: Wednesday, 27th January, 2010 4:30pm

Optimism for 2010 as fall in start-ups slows

The decline in the number of new business start-ups in 2009 was not as steep as anticipated, new figures have revealed.

According to Bank of Ireland's Business Start-Up Barometer, nationally there was a 9% fall in new businesses last year, compared to 2008.

202 new businesses commenced in Westmeath in 2009, a fall of just 7% on the 218 of 2008.

Dublin continues to record the highest number of new start-ups, registering 46% of the annual total.

2009 saw a slowing of the dramatic decline in new business activity which had been experienced in 2008.

Gerry McInerney, Commercial Manager, Bank of Ireland, Mullingar, commented: "2009 was a challenging year with a fall off in new business start-ups, particularly in the first half of the year. This slowed significantly in the second half and resulting in a 9% year on year drop. As expected, the pick up in the latter part of the year can be partly attributed to the lead in time for establishing new businesses, with many people opting for entrepreneurship as an employment option.

"2010 should be viewed with some optimism. The faster pace of recovery in Europe, the US and other countries offers growth opportunities for export orientated start-ups. Indeed, the stabilisation of Ireland's finances should help to instil more consumer confidence and business activity in 2010. In addition, the government's extension to its corporation tax exemption for start-ups makes 2010 an attractive year to start a business.

"Going into 2010, there are some signs of optimism. Many businesses have taken the necessary action to reduce costs and realign their business models. Company dissolutions, although at the highest level in 2009 are declining quarter by quarter. The outlook for 2010 is that overall start-up activity will remain at between 13,000 and 15,000 new companies being formed this year," he said.