According to new research, one-third of all new businesses fail during the first four years of operation.
In line with CRIFVision-net's examination of insolvencies and general closures, startups are more vulnerable during years three and four.
In accordance with the survey, one-quarter of all insolvencies involve enterprises founded within the previous four years.
"This highlights the need for increased local and government support, acknowledging the challenges that business owners face such as high energy, rental costs, and the continued uncertainty caused by inflation," said Christine Cullen, Managing Director of CRIFVision-net.
"A need for enhanced assistance during the first five years of operation is crucial," she went on to say.
"If we can proactively address these challenges, the Irish government can create an environment that nurtures the growth and sustainability of emerging businesses leading to a more robust and resilient economy," added.
Overall, the firm discovered that 22,581 new companies were established last year.
That marks an increase of almost 4% or 944 on the previous year, when the lowest number of new firms since 2016 were created.
The rate of start-up growth in 2023 was the second highest since 2017.
However, in 2023, the majority of new enterprises were established outside of the big metropolitan areas.
"A growing trend in the establishment of start-ups outside the major urban centres could be influenced by the ongoing housing crisis, coupled with low unemployment rates," Ms. Cullen added.
Offaly had the highest percentage growth in new firms, with 224 new businesses established, an increase of 28% over the previous year.
Leitrim saw the greatest percentage reduction, dropping 9% to 111.
Dublin had the highest number of new companies, at 9,883.
Most industries witnessed a rise in new businesses, with automotive experiencing the greatest percentage growth (23%), fishing up 17%, and transport, storage, and communication up 10%.
Surprisingly, manufacturing fell by 10% in news firms, while real estate fell by 2% due to challenging market conditions.
Source: RTE