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118 start-up firms launched every day

However, 149 companies — or six each day — declared insolvent last month. This is down 17% on same period last year.

Vision-net managing director Christine Cullen said these figures show that, while entrepreneurs want to get new businesses off the ground, the Irish economy is still characterised by collapsing companies and challenging trading conditions.

"The number of new companies and business start-ups is high and it bears out our reputation for entrepreneurship which the Global Entrepreneurship Monitor says is among the highest in Europe.

"However, much of this is attributable to necessity-driven entrepreneurship — people who start companies because they cannot get a job anywhere else — and our advice is to research the marketplace using proper credit checks and business intelligence before embarking on new ventures."

Of the companies declared insolvent, 96 were liquidated, 50 entered receivership and examiners were appointed in three cases. Liquidator appointments are down almost one-fifth on last year while receiverships have dropped by 17%.

Between Apr 1 and Apr 30, 115 companies held meetings of creditors — down 22% on the same period last year — owing over €40m.

One quarter of new company incorporations last month were in the professional services sector. However, this sector also accounted for 24% of company closures, meaning no growth was experienced.

Motor and real estate created the least start-ups at 3% each. Of the 11,156 firms Vision-net surveyed, 55% were deemed to be at high risk of collapse, 14% were deemed medium risk, and 31% were in the low-risk category.

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