World Economy

SMEs in Ireland Generate Almost Half of Revenues

More than 99% of businesses in Ireland are SMEs.More than 99% of businesses in Ireland are SMEs.

Large companies account for only a small number of the total number of businesses in Ireland but employ almost a third of the population, a new study finds.

The Business in Ireland 2015 study from the Central Statistics Office shows more than 99% of businesses in Ireland are small and medium-sized enterprises, RTE reported.

Overall, so-called ‘micro-enterprises’, which employ less than 10 people, accounted for 92.2% of all enterprises recorded during the year. Large corporations only accounted for 0.2% of enterprises in the country in 2015 but were found to employ almost 31% of the population.

During 2015, the number of new enterprises established rose by 11% to 18,102 with 15,316 businesses closing up. Between 2010 and 2015, the number of enterprises formed rose by almost 30%.

The study reveals SMEs generated 47.8% of total turnover in the business economy and almost 39% of the value of goods and services produced in Ireland was attributed to such enterprises.

According to the report, the top 50 enterprises by value generated 55% of value added in 2015, while only accounting for 6% of employment. Micro enterprises accounted for almost 28% of employees with SMEs accounting for 41.5% of staff numbers.

Irish multinationals employed almost 774,000 persons in foreign affiliates and generated turnover of €168.3 billion. By contrast, foreign multinationals employed just under 304,400 people in Ireland and recorded revenues of €339.2 billion.

Meanwhile, a jump in house prices of nearly 6% to around £160,700 ($211,932) suggests that the economy is coping well under pressures including Brexit and the lack of an executive, it was claimed Friday.

The Ulster University house price survey for July to September reported an average house price of £160,758—up 1.9% over the year and up 5.8% on the quarter before. South Belfast had the highest prices at just over £230,000, while north Belfast had the lowest prices in the province at around £110,430.

Terraced homes and town houses saw the biggest percentage growth year-on-year at 10.3%, to reach an average of around £108,140. But the research—which does not include auction or cash sales—also found that first-time buyers were still relying on parental help to enable them to raise a deposit.

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