Record year for Irish entrepreneurship in 2025

Ottoline Spearman

Ireland has recorded the strongest year for start-ups in 15 years, new data shows.

Last year, 26,500 start-ups were formed - an 11 per cent year-on-year increase - according to business intelligence provider CRIFVision-Net.

Agriculture (38 per cent), IT (29 per cent) and construction (18 per cent) saw the largest year-on-year increases, reflecting the demand for housing and infrastructure.

Key sectors such as wholesale/retail (9 per cent) and hospitality (5 per cent) remained relatively high.

While Dublin accounted for over 40 per cent of new companies with 11,450 start-ups, there was growth across the country.

Cork added 2,552 new firms, followed by Galway (1,145), Kildare (1,124), and Meath (1,018).

The 2025 figures also exceeded the previous post-Covid peak of 25,692 recorded in 2021.

The firm said that periods of record-low unemployment can sometimes dampen start-up activity, but that current trends point to a growing appetite for indigenous enterprise.

They said that this reflects a shift to reduce reliance on global multinationals amid heightened geopolitical uncertainty, global tariff concerns and evolving trade relationships.

At the same time, tighter credit conditions, rising corporate stress, housing pressures, an ongoing cost-of-living burden and increased volatility in export markets may be contributing to elevated stress indicators, according to CRIFVision-Net. They said that targeted support is needed to ensure that momentum continues.

Christine Cullen, CRIFVision-Net Managing Director said: "The 2025 figures demonstrate remarkable resilience and entrepreneurial ambition across Ireland. 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.

"By nurturing both emerging and existing enterprises, Ireland can sustain this momentum and strengthen its economy amid global uncertainties."

The data also showed that 1,808 judgments against companies were recorded in 2025, totalling €47.2 million. This represents a 67 per cent jump in value and a 29 per cent increase in cases compared to 2024.

This indicates that more businesses are struggling to meet payment commitments, forcing creditors to seek legal recourse.

Ms Cullen said the data highlights a widening gap between entrepreneurial activity and financial resilience: “While it is encouraging to see strong levels of start-up formation, the rise in commercial judgments signals that many existing businesses are under significant financial pressure. More companies are struggling to meet payment obligations, which is increasingly forcing creditors to seek legal recourse.

“If rising costs, tighter credit conditions and export market volatility persist without adequate support, there is a real risk that today’s start-up momentum will not translate into sustainable long-term growth.”

The average age of insolvent firms is 11 years, with CRIFVision-Net suggesting that established businesses, rather than young start-ups, are feeling the most pressure from rising costs and tighter credit.

Many of these companies have already weathered previous economic shocks, they said, but are now facing a more sustained combination of rising operating costs, higher interest rates and tighter access to credit.

For mature firms with fixed overheads, long-term leases and legacy debt, the ability to adapt quickly is often limited, leaving them more exposed as margins are squeezed and cashflow pressures intensify. They said that this points to a challenging environment for the core of the business economy, not just its newest entrants.