Small and medium-sized enterprises accounted for a whopping 99.8 per cent of all businesses in the Republic in 2022, according to the Central Statistics Office (CSO).
The agency’s latest “business in Ireland” survey indicated that SMEs, enterprises employing 250 people or less, employed more than two thirds (68 per cent) of the State’s workforce and were responsible for two-fifths (43 per cent) of total turnover.
It calculated that turnover by businesses of all sizes amounted to just under €1.3 trillion in 2022 with a gross value added (GVA) figure – a measure of the value that producers add to the goods and services they buy in – of €424.2 billion.
The number of enterprises in the economy was 389,654 with 2.3 million people employed in 2022, the CSO said.
Large enterprises (those with 250 plus people) accounted for just 0.2 per cent of all business enterprises but employed 32 per cent of workers, the report indicated.
They generated 57 per cent of total turnover and 59 per cent of total GVA in 2022, the CSO said.
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The industry sector had the lowest share of enterprises (6 per cent) in 2022 but made up the second largest share of GVA (42 per cent) while accounting for 33 per cent of total turnover.
Despite having a large share of turnover, the industry sector represented just 13 per cent of people employed. More than three-quarters (1.8 million) of all people employed in the economy in 2022 were in services (61 per cent) and distribution (18 per cent).
More than six in ten (62 per cent) of all enterprises were in the services sector while distribution accounted for a further 13 per cent of enterprises.
Turnover in the services sector accounted for 46.5 per cent (€598.9 billion) of the total turnover. This was largely driven by the information and communication sector at €305.6 billion (24 per cent) of total turnover, the CSO said. Construction firms accounted for 20 per cent of all enterprises and 9 per cent of total employment.
Separate figures from the CSO indicated labour productivity in the Republic decreased marginally to €99.70 per hour in the first quarter.
Productivity, loosely defined as the rate at which goods or services are produced in an economy, is a key driver of earnings and prosperity.
Labour productivity for the domestic sector (at €59.40 per hour) was a fraction of productivity for the foreign sector (€356.2 per hour) reflecting the prevalence of big global multinationals.