The number of businesses operating in the Irish economy rose above 400,000 for the first time in 2023.
Figures from the Central Statistics Office (CSO) showed the number of active enterprises in the Republic rose by 3 per cent to 401,359 in 2023 while the number of people employed in these enterprises increased by 2.3 per cent to 2.3 million.
The latter figure does not include those employed in the civil service or in agriculture.
The figures indicated there was year-to-year growth in all business types other than small enterprises, those containing 10-49 staff, which contracted by 0.7 per cent.
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The number of active micro enterprises, those containing fewer than 10 employees, rose by 3.3 per cent to 371,480.
Micro enterprises accounted for 92.6 per cent of businesses n the economy in 2023 and 26.9 per cent of people employed.
The number of small enterprises fell 0.7 per cent to 24,282 while the number of medium ones, those containing 50-249 employees, rose by 1.6 per cent to 4,662.
The number of large enterprises, those with headcounts above 250, rose by 5.5 per cent to 935.
The number of SMEs (small and medium sized enterprises), rose by 3 per cent to 400,424.
Most sectors saw expansion in the number of enterprises in the year. The largest growth was in the electricity, gas, steam and air conditioning supply sector, with an increase of 11.1 per cent. Wholesale and retail trade had the only decline at -0.2 per cent.
There was a decrease of 8.6 per cent in employment in the human health and social work activities sector in 2023.
In all other sectors employment grew, with the biggest sectoral increase in the electricity, gas, steam and air conditioning supply sector, which had a rise of 9.7 per cent in people employed.
The number of businesses ceasing to operate (enterprise deaths) in 2022 increased by 13.2 per cent compared with 2021.
The number of people employed in these enterprises ceasing activity was 46,446, a rise of 14.3 per cent during the same period.
The CSO noted that micro enterprises accounted for the largest proportion of enterprise deaths and people employed in ceased enterprises.
It also noted that an enterprise is only included in “the count of deaths” if it is not reactivated within two years.
The agency said that an enterprise is considered to be active in a certain period if it generates turnover, employs staff, or makes investments in that period.
