Richard Bruton (Dublin Bay North, Fine Gael)
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119. To ask the Minister for Enterprise, Trade and Employment the number of business start-ups and business closures, both companies and unincorporated businesses; if he has considered a review of policy tools in the area of start-up, and early-stage resilience and survival of enterprises; and if he will make a statement on the matter. [23313/24]

Dara Calleary (Mayo, Fianna Fail)
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My Department continues to ensure that appropriate supports are available to businesses in Ireland throughout their lifecycle. Last week, I announced that the Government had agreed a range of measures with the aim of reducing costs for small and medium sized businesses. These measures represent agreement from across government on the need to support our SMEs and are central to our ability to build a broad-based and successful economy and wider society. Our small businesses are the backbone of our local economy and provide much valued employment in communities across the country.

I should clarify that the information available to my Department in relation to company incorporations and closures relates to entities registered with the Companies Registration Office (CRO). This does not include businesses operating as sole traders or unincorporated entities. In relation to incorporations in 2023, 22,384 companies were added to the register bringing the total number of companies on the register to 306,559. Companies can go out of business for a variety of reasons, including through application to the CRO to be voluntarily struck off the companies register, and in 2023 a total of 6,227 companies availed of this option. Companies are required to notify the Companies Registration Office when entering liquidation. In 2023, there was 2,389 notifications comprised of members voluntary, creditors voluntary and court ordered liquidations. The ratio of incorporations to liquidations in 2023 was 9:1 which demonstrates the attractiveness of Ireland as a place to do business.

In addition to the liquidation figures outlined, small and micro companies who are experiencing temporary financial problems can avail of a bespoke rescue process called the Small Companies Administrative Rescue Process, otherwise known as ‘SCARP’. The SCARP process allows relevant small and micro companies to restructure with the agreement of creditors; avoid liquidation; and ensures that creditors get a better outcome compared to a liquidation.

My Department works to ensure that the corporate landscape provides the necessary range of supports and appropriate regulatory framework to incubate and support new and existing businesses. These measures have included updating the Companies Act with a range of practical, pro-enterprise reforms such as proposals to

• provide for companies and industrial and provident societies to hold hybrid or fully virtual general meetings on a permanent basis,
• removal of the automatic loss of the audit exemption for small and micro companies in respect of a first instance of late filing with the Companies Registration Office, and
• implementing the recent revision of the monetary thresholds in the Accounting Directive which will reduce the regulatory/administrative burden related to corporate reporting for over 3,000 companies.