Top sectors for new enterprises

SERVICE providers in sectors such as communication and administration are the leading creators of new enterprises, according to the Business Demography 2008 report by the Central Statistics Office (CSO).

The number of Irish- based information and communication companies grew by 10% in 2008, the most recent period studied. Administration and support service firms were next strongest at 6.6%. Real estate was the weakest sector, accounting for 4.2% of new enterprises.

Overall, the total number of enterprises fell by 4,700 to 203,100 in 2008. Some 11,800 of these were new firms, collectively employing 13,900 people, or an average of 1.2 per enterprise.

Encouragingly, of the 13,300 new enterprises created during 2007, some 78% survived into 2008. And employment among these survivors grew by 89% from 11,500 in 2007 to 21,700 in 2008.

The report’s authors note: “Most new enterprises are small in employment terms in their first year. Of the 11,800 ‘births’ in 2008, 74% had no registered employment during this year, while a further 23% had between one and four employees.

“Employment is calculated on an annualised equivalent basis. No distinction is made between full-time and part-time. If a person is registered for 26 weeks, their contribution to the employment figures is 0.5.”

The total numbers employed in the business sectors analysed fell by 31,331 in the same period, or a 2.1% fall to 1,476,300.

The longer view for new businesses is more positive. Of the 16,900 new enterprises in 2006, 12,100 or 71% were still in existence in 2008. The total employment of these survivors increased by 157% from 12,500 to 32,200.


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