The number of company start-ups in the Republic rose by 11 per cent last year to the highest level in 15 years.
New figures released by business data company CRIFVision-Net reveal that 26,500 new companies were formed in the Republic last year, with businesses related to agriculture, IT and construction driving the increase.
However, the figures also show there were 1,808 legal judgments against existing companies in 2025, valued at a total €47.2 million. This represents a 67 per cent jump in value and a 29 per cent increase in the number of cases compared to 2024.
“The 2025 figures demonstrate remarkable resilience and entrepreneurial ambition across Ireland,” said CRIFVision-Net managing director Christine Cullen.
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“While the surge in new start-ups is encouraging, it also underscores the importance of supporting established businesses facing rising costs and tighter credit conditions.”
The 2025 figures exceed the previous post-Covid peak of 25,692 recorded in 2021. While CRIFVision-net said that periods of record-low unemployment typically dampen start-up activity, the growing appetite for indigenous enterprise could reflect evolving trade relationships at a time of heightened political uncertainty.
While Irish unemployment rose to 5.3 per cent in the third quarter of last year from 4.5 per cent for the same period in 2024, the level remains low.
CRIFVision said the momentum of individuals setting up new companies could stall without support from Government, increasing the State’s dependence on multinational enterprise.
Figures released earlier this month by Deloitte show Irish company insolvencies reduced by 7 per cent last year to 812. However, the professional services firm sees the figure increasing to 900 in 2026.
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Whilst a VAT reduction from 13.5 per cent to 9 per cent from July 2026 may assist companies in hospitality, the Deloitte figures show that hospitality firms accounted for only 16 per cent of all insolvencies in 2025. The increased minimum wage and pension automatic enrolment this year will continue to put pressure on profit margins for this sector, it said.
Meanwhile, recruitment consultancy Morgan McKinley has highlighted in a new report on the professional services segment of the economy that while graduate hiring slowed last year as artificial intelligence (AI) affected entry-level positions, “demand for experienced and specialist talent remains strong”.
“Employers are not pulling back, but they are being far more deliberate about where they hire,” said Trayc Keevans, foreign direct investment director at Morgan McKinley. “Demand has narrowed around critical skills, experienced talent and roles that directly support delivery, productivity, and growth.”
The recent uptick in the Irish unemployment rate suggests “a shift towards more intentional job search behaviour rather than labour market stress”, according to the firm. Employers looking to reduce numbers are generally doing so quietly by not replacing staff who are retiring or moving on, rather than large-scale redundancies, it added.
