The rate of new businesses being created in Northern Ireland has fallen to its lowest level in more than a decade.
Some 5,370 new businesses were formed in Northern Ireland in 2023 – a decrease of 0.3% on the previous year.
The business birth rate – which looks at the number of births as a proportion of active businesses – in Northern Ireland was 8.3% in 2023, which is the same as 2022, and is at the lowest level since 2012.
Meanwhile, the number of new businesses closing in 2023 fell by 1.2% from the previous year.
“Business death rates, when compared with 2022, showed decreases across all four regions within the UK, the first time this has happened since 2018,” the latest figures from the Northern Ireland Statistics and Research Agency (Nirsa), said.
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Business birth rates increased for five of the 11 district councils in Northern Ireland in the year to December 2023.
Mid and East Antrim had the highest business birth rate (10.3%), while Fermanagh and Omagh, and Mid Ulster shared the lowest (7.1%).
“Business death rates decreased across seven district council areas over the same 12-month period,” the report said.
“Armagh City, Banbridge and Craigavon, and Lisburn and Castlereagh City saw increases of more 1% with Fermanagh and Omagh, and Newry, Mourne and Down seeing small increases. Mid Ulster had the lowest death rate (6.1%) across the region for the seventh consecutive year.”
Breaking down the sectors, the transport and storage sector saw the largest decline in the number of new firms – down by 215 businesses, year-on-year.
“This industry had witnessed significant increases in the number of businesses since 2019, which coincided with the Covid-19 pandemic and the need for home delivery services,” the report said.
“The business death rate was greater than the birth rate for five of the 15 broad industry groups, including transport and storage (including postal) and finance and insurance.”