Business in Ireland 2022

With significant contributions from industries, services, and small and medium enterprises (SMEs), Ireland continued to perform economically inn 2022/In 2022, Ireland’s Structural Business Economy achieved an impressive total turnover of €1,288.7 billion. This figure underscores the dynamic nature of the Irish economy, driven by a diverse range of industries and services. Alongside this, the Gross Value Added (GVA), a crucial indicator of the economic value generated by businesses after accounting for input costs, stood at a substantial €424.2 billion. These figures highlight the significant value creation across the economy and the robust performance of Irish enterprises.

Enterprise 

The number of enterprises operating within the Structural Business Economy in 2022 was 389,654, employing a total of 2,292,598 people. These enterprises are the backbone of the Irish economy, providing employment and driving innovation across various sectors. The distribution of these enterprises across different industries offers insights into the structural dynamics of the economy.

Services Sector

The Services sector emerged as the most prominent sector in 2022, accounting for the largest share of enterprises, employment, turnover, and GVA. Specifically:

• Enterprises: The Services sector comprised 62% of all enterprises, reflecting its dominant role in the Irish business environment.
• Employment: This sector also employed 61% of the total workforce, making it the largest employer in the Structural Business Economy.
• Turnover and GVA: The sector generated 47% of both the total turnover and GVA, underscoring its substantial contribution to the overall economy.

The Services sector’s prominence can be attributed to the diversity of activities it encompasses, ranging from professional services, finance, and real estate to healthcare, education, and hospitality. This diversity not only fuels economic growth but also creates a broad spectrum of employment opportunities.

Industry

In contrast to the Services sector, the Industry sector accounted for only 6% of enterprises, making it the smallest in terms of the number of businesses. However, its economic impact far exceeded its size:

• Turnover: The Industry sector contributed 33% of the total turnover, highlighting its substantial revenue generation capabilities.
• GVA: It accounted for 42% of the GVA, making it the second-largest contributor after the Services sector.
• Employment: Despite its smaller share of enterprises, Industry employed 13% of the total workforce, indicating its role as a significant employer in high-value sectors such as manufacturing, technology, and pharmaceuticals.

These figures demonstrate that while the Industry sector may have a smaller number of enterprises, its contribution to the economy in terms of value creation and turnover is substantial, particularly in high-value-added industries.

Distribution and Construction Sectors

The Distribution and Construction sectors also played crucial roles in the Irish economy in 2022:

• Distribution: This sector accounted for 18% of persons employed and 17% of total turnover. As a vital link in the supply chain, the Distribution sector supports the flow of goods and services, contributing significantly to economic activity.
• Construction: Representing 20% of all enterprises, the Construction sector employed 9% of the workforce. Its importance lies not only in employment but also in its role in infrastructure development, which is critical for supporting long-term economic growth.

SMEs

Small and medium enterprises (SMEs), defined as businesses with fewer than 250 employees, are the cornerstone of the Irish economy. In 2022, SMEs made significant contributions:

• Turnover: SMEs accounted for more than 43% of the total turnover, highlighting their crucial role in driving economic activity.
• GVA: SMEs generated almost 41% of the GVA, demonstrating their importance in value creation across various sectors.

The strong performance of SMEs underscores their role as engines of innovation, employment, and economic resilience. These businesses, often deeply rooted in local communities, are vital for balanced and sustainable economic growth.

The key findings from 2022 paint a picture of a vibrant and diverse Irish economy, with strong contributions from the Services sector, significant value generation from the Industry sector, and the indispensable role of SMEs. The record-breaking turnover and GVA figures reflect the dynamism of the Structural Business Economy, while the distribution of enterprises across sectors highlights the varied landscape of Irish business activity.