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Key Findings

Construction sector grew 23.1% between 2017 and 2021

Online ISSN: 2009-6402
CSO statistical publication, , 11am

In order to enhance the quality of the data, a review of Business Demography data for 2019 and 2020 was undertaken. As a result, the 2019 and 2020 publications were withdrawn in April 2023 and it was indicated, at that time, that revised estimates were expected to be published in Q3 2023.

These revised estimates for 2019 and 2020 are now included in the 2021 publication below. Please see the Information Note on Revisions of Business Demography 2019 and 2020 for additional details.

Key Findings

  • The number of active enterprises in the construction sector increased by 23.1% between 2017 and 2021, the largest sector increase in this time.

  • There were 2.3 million persons engaged and 365,766 enterprises engaged in economic activity in 2021.

  • In 2021, there was a year-to-year increase in the number of enterprises in all size classes.

  • The Other Services sector represent 59.4% of enterprises and 59.7% of persons engaged.

  • Small enterprises, i.e. those with less than 10 persons, engaged accounted for 92.4% of enterprises in the economy and 23.7% of persons engaged.

  • Large enterprises, i.e. those with 250 and more persons engaged, accounted for 0.2% of enterprises and 39.9% of persons engaged.

  • The number of enterprise births in 2021 at 35,783 was up 0.7% on the 2020 figure while the number of persons engaged associated with births fell by 36.4% to 37,897 in 2021. The Other Services sector accounted for 60.2% of persons engaged in newly birthed enterprises.

  • The number of enterprise deaths in 2020 increased by 1.1% compared with 2019, while the number of persons engaged in enterprise deaths dropped by 11.6% in the same period.

Statistician's Comment

Commenting on the release, James O’Rourke, Statistician in the Business Division, said: "Business Demography 2021 provides information on the business economy in Ireland. In 2021, there was an increase (+6.3%) in the number of Enterprises compared with 2020 and a 7.6% increase in persons engaged (See Headline Table and Tables 1 & 2).

The Professional, Scientific, & Technical activities sector had the largest decrease in Enterprise Births (23.5%). There was an overall decline in the number of persons engaged in newly birthed enterprises (26.6%) (See Figures 8 & 9).

Kerry (12.8%) and Donegal (10.8%) had the highest proportion of Tourism Enterprises, while Dublin (11,768) had the highest number (See Figure 5).

Persons Engaged increased in all size classes with the largest increase being seen in the 250 and over, which rose by 13.1% (See Table 4).

Dublin and Cork combined accounted for 43.4% of Enterprises in Ireland in 2021 (See Figure 2B).

The Other Services sector accounted for 59.4% of Enterprises and 59.7% of Persons Engaged. Construction accounted for 19.3% of Enterprises, but only 7.4% of Persons Engaged (See Figure 2A & 4).

The number of Large (250+ Persons Engaged) Enterprises represented just 0.2% of Enterprises but still accounted for 39.9% of Persons Engaged (See Figures 6 & 7).

Enterprise deaths increased across all sectors, with the exception of the Wholesale & Retail sector, and the Industry sector (See Figures 10 & 11).”

Summary Figures

The table below shows summary figures for Business Demography over the last five years, and comparison figures for ten years ago.

Business Demography 2021201120172018201920202021% Change 2020 - 2021
Number of enterprises293,128333,801331,323337,011344,144365,7666.3%
Persons engaged1,665,9472,025,9702,088,2342,260,6982,142,0212,305,3187.6%
Enterprise births17,40326,76724,80326,36435,53335,7830.7%
Enterprise deaths25,19427,81328,30730,04630,380  
1The enterprise deaths figure for 2020 is an estimate as a 2nd year of inactivity is necessary to be counted as a final death (see Background Notes).

Annual changes and sectoral comparison

There were 365,766 active enterprises in the business economy in Ireland in 2021, representing a rise of 6.3% over the previous year. This growth is reflected in the Construction, and Real Estate Activities sectors, with increases of 12.4% and 9.6% respectively. All sectors saw expansion in the number of enterprises during the year, except for Transportation & Storage which decreased slightly by 0.3%. Accommodation & Food Service Activities had the lowest rise of all the sectors at 1.6%. There were over 2.3 million persons engaged3. This represents an increase of 7.6% in the number of persons engaged from 2020.

The effect of the COVID-19 pandemic on businesses continues to be noticed here although, similar to 2020, the full effect is not yet seen. There was a slight decrease in employment in three sectors, namely Arts, Entertainment & Recreation, Other Service Activities, and Real Estate Activities with -1.4%, -0.4%, and -0.2% respectively. In all other sectors, employment grew with the biggest sectoral increase in the Human Health & Social Work Activities sector, which had a rise of 32.9% in persons engaged. However, this large increase can be mostly attributed to some large employers being reclassified to this sector. The overall expansion in employment was distributed across all size classes with the largest growth in the 250 and over class (See Summary Table and Tables 1, 2, 3 & 4).

Active Enterprises (Index)Persons Engaged (Index)
2008100100
200910193
201010188
201110188
201210388
201310390
201410293
201510697
2016106102
2017115107
2018114110
2019116119
2020119113
2021126121

The Other Services sector accounted for almost three out of five (59.4%) of all enterprises in 2021, with the Construction sector accounting for just under a fifth (19.3%). While all sectors grew over the five years between 2017 and 2021 inclusive, the largest growth was in Construction at 23.1% followed by Financial & Insurance Activities at 11.6% (See Figures 2A & 3, Tables 1, 2 & 4 and Summary Table).

Percentage of Enterprises by Sector 2021
Other Services59.4
Wholesale and Retail13.2
Industry5.6
Construction19.3
Financial Service Activities2.5

At the county level, Dublin and Cork dominate the number of enterprises, with 119,942 and 38,804 enterprises respectively. Leitrim has the fewest enterprises, with 2,569 (See Figure 2B).

Sector
Industry9.4
Construction 23.1
Wholesale and Retail-0.4
Financial11.6
Other Services8.1
Table 1 Active Enterprises (Number) by Activity and Year

When looking at the distribution of persons engaged across all sectors in 2021, the Other Services sector accounted for 59.7% of the total, followed by Wholesale & Retail (16.6%) and Industry (11.8%) (See Figure 4 and Table 2).

 

Distribution of Persons Engaged by Sector 2021
Other Services59.7
Wholesale and Retail16.6
Industry11.8
Construction 7.4
Financial Service Activities4.5
Table 2 Persons Engaged (Number) by Activity and Year

Tourism enterprises

Figure 5 shows the percentage of enterprises in the tourism sectors as defined by Eurostat (see Background Notes), across each county. Kerry has the highest proportion of enterprises that fall into the tourism category, at 12.8% of total enterprises in the county, followed by Donegal with 10.8%. While Dublin has the largest number of tourism enterprises, at 11,768 this was 9.8% of overall enterprises in Dublin. Monaghan has the lowest percentage of enterprises in the tourism sector, with 5.4%.

Size class composition of the business economy

Small and medium sized enterprises (SMEs) accounted for 99.8% of the total enterprise population for 2021. They also accounted for 60.1% of total persons engaged, with large enterprises (employing 250 or more persons) employing 39.9% of persons engaged, despite accounting for only a small fraction (0.2%) of total enterprise numbers.

Across each size class the Other Services sector had the majority of enterprises, with 59.7% (201,698) of enterprises employing fewer than 10 and 56.3% (12,799) in the 10 to 49 category, while Industry represented 21.8% (188) of large enterprises (250 or more persons engaged), with Construction contributing 3.0% (26) of large enterprises (See Figures 6 & 7 and Tables 3 & 4).

EnterprisesPersons Engaged
Under 1092.423.7
10 to 496.219.2
50 to 2491.117.3
250 and over0.239.9
IndustryOther ServicesConstructionWholesale and RetailFinancial
Under 105.359.720.212.42.4
10 to 497.856.38.824.62.5
50 to 24915.356.25.419.33.8
250 and over21.854.7312.97.6
Table 3 Active Enterprises (Number) by Size Class and Year

Table 4 Persons Engaged (Number) by Size Class and Year

Enterprise births and deaths

This Business Demography release relates to reference year 2021. However, data on enterprise deaths are available up to reference year 2020 only, due to the fact that two complete sets of yearly data are required for an enterprise to be declared a final enterprise death. All enterprise births were followed for 5 years (2016 to 2020) to assess their survival rate and the resulting effect on employment. 

The one-year survival rate (relating to enterprises born in one year and still active in the next year) was 80.0% for enterprises born in 2020 who were still active in 2021 (See Table 5).

IndustryOther ServicesConstructionWholesale and RetailFinancialTotal
2011895108512589268338517403
2012926112382757270451918144
2013968102492473230463916633
20141110151793526246841822701
20151185136374226257354422165
20161329140944623284846623360
201714101585653452933122326767
201813081416250882933131224803
20191378162875151282372526364
202019292065484763428104635533
202117612009710508257184635783

Enterprise births

There were 35,783 new enterprise births in 2021, a slight increase of 0.7% on 2020.

The largest numerical decrease in the number of births was in the Professional, Scientific, & Technical Activities sector which fell by -1,189 enterprises, from 5060 in 2020 to 3,871 in 2021. There were declines in 10 of the 17 sectors including in the Accommodation & Food Service Activities and Wholesale & Retail sectors with drops in the number of births of -995 and -857, respectively.

The number of births increased in the Construction and Real Estate Activities sectors in 2021, by 2,032 and 1,048 enterprises, respectively (See Figure 8 and Table 5).

Distribution of Persons Engaged in Enterprise Births by Sector 2021
Other Services60.2
Wholesale and Retail8.5
Industry4.2
Construction26.1
Financial Service Activities0.9

Persons engaged in enterprise births

There were 37,897 persons engaged in newly birthed enterprises in 2021. This is a decrease from the 2020 figure of 51,679 persons engaged in newly birthed enterprises. The Other Services sector accounted for 60.2% (22,818) of persons engaged in enterprise births, followed by Construction (26.1%) and Wholesale & Retail (8.5%) (See Figure 9).

Table 5 Enterprise Births (Number) by Activity and Year

IndustryOther ServicesConstructionWholesale and RetailFinancialTotal
20111347132505609452852325257
20121325153464974409178026516
20131471175755279445476929548
20141243160914192368269725905
20151332164984390369388226795
20161225151254229335659424529
20171379169534903384173727813
20181411170905119379988828307
20191393189135242364685230046
20201367191935597325896530380

Enterprise deaths

There were 30,380 enterprises that ceased trading during 2020, containing approximately 40,320 persons engaged. This represents an increase of 1.1% in enterprise deaths compared with 2019.Enterprise death figures for 2020 are estimated, as an enterprise needs two full years of inactivity before being declared a final death.

The number of enterprise deaths increased across all sectors in 2021, with the exception of the Wholesale & Retail sector and the Industry sector, which decreased by 10.6% and 1.9% respectively. The Other Services sector showed the highest number of enterprise deaths with 19,193 enterprises ceasing activity or 63.2% of total deaths. The Construction sector was responsible for the second largest number of deaths at 5,597 (18.4%) (See Figure 10 and Table 6).

Percentage of Persons Engaged in Enterprises Deaths by Sector 2020
Other Services66.2
Wholesale and Retail12.6
Industry4.1
Construction15.4
Financial Service Activities1.6

Persons engaged in enterprise deaths

There were 40,320 persons engaged in enterprise deaths in 2020. The Other Services sector accounted for 66.2% (26,708) of these, followed by the Construction sector with 15.4% (6,222). The Financial & Insurance Activities sector had the least with 1.6% (638) (See Figure 11).

Table 6 Enterprise Deaths (Number) by Activity and Year

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