Business Demography 2009

Business Demography NACE Rev. 2 2009

New and young business enterprises account for 77,800 jobs in 2009

The 46,400 enterprises birthed in the period 2006 to 2009 and active in 2009 had 77,800 persons engaged. This represents 6.0% of the 1,302,100 persons engaged in the 199,200 enterprises active1 in the business economy2 in 2009.

13,800 enterprises or 6.9% of enterprises in the 2009 business economy population were identified as enterprise births³. The 2008 enterprise birth rate is estimated at 5.9%.

The 13,800 enterprise births in 2009 engaged 12,400 persons or an average of 0.9 persons per enterprise birth. This compares with an average of 1.1 persons employed per enterprise birth in the 12,000 enterprise births identified in the 2008 business economy population.

Sector D, Electricity, gas, steam and air conditioning supply, was identified as the sector with the highest enterprise birth rate at 15.6% (44 enterprise births), followed by Sector J, Information and communication, with 9.5% (936 enterprise births).

However, when looking at the contribution of an enterprise birth to employment, Sector D had 0.5 persons engaged per enterprise birth compared to 0.9 persons engaged per enterprise birth for the wider business economy.

Business Demography statistics provide a detailed breakdown of the numbers of active enterprises and newly birthed enterprises in the business economy, covering NACE Rev 2 sectors B - N (excludes NACE code 64.20 Activities of holding companies), broken down by economic activity and employment class or legal form. Related employment data is also supplied. A breakdown of active enterprises and related employment on a county basis is also provided.

This press release covers the reference year 2009. Statistics are also provided on enterprise births since 2006 that were still active during 2009. All enterprise births will be followed for 5 years to assess their survival rate and the resulting effect on employment.

Please see  for further details.

Main Business Demography results:

Enterprises

• The total number of enterprises in the business economy fell by 3,800 (1.9%) to 199,200 between 2008 and 2009.

• Persons engaged in the business economy fell by 181,900 (12.3%) to 1,302,100.

Enterprise births

• There were 13,800 enterprise births in 2009. This is an increase of 1,900 (15.5%) from the 12,000 enterprises births in 2008.

• Enterprise births accounted for 0.95% of the 1,302,100 persons engaged in the business economy in 2009, as opposed to 0.92% of the 1,484,000 persons engaged in 2008. This corresponds to 1,200 fewer persons engaged in enterprise births in 2009.

• 85% of enterprise births had no employees during 2009. A further 14% had between 1 and 4 employees.

Survival rates for enterprise births

• Of the 12,000 enterprise births in 2008, 10,300 (85.8%) survived to 2009. The persons engaged in these surviving enterprises increased by 64.6% from 11,600 in 2008 to 19,100 in 2009.
• Of the 13,500 enterprise births in 2007, 10,200 (75.7%) survived to 2009. The persons engaged in these surviving enterprises increased by 73.7% from 11,200 in 2007 to 19,500 in 2009.
• Of the 16,700 enterprise births in 2006, 12,200 (72.8%) survived to 2009. The persons engaged in these surviving enterprises increased by 106.4% from 13,000 in 2006 to 26,800 in 2009.

Detailed data tables are available on CSO’s data dissemination service: Click here

For further information on the NACE Rev. 2 classification of economic activity: Click here

Footnotes:

1The population of active enterprises as measured by Business Demography covers all enterprises that are active on administrative sources during the reference year. This provides comprehensive coverage of small enterprises. Such comprehensive coverage is not possible with traditional survey methodologies.

2The NACE Rev 2 sectors covered in the business economy are:

B – Mining and Quarrying
C – Manufacturing
D – Electricity, Gas, Steam and Air Conditioning Supply
E – Water Supply; Sewerage, Waste management and Remediation Activities
F – Construction
G – Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
H – Transportation and Storage
I – Accommodation and Food Service Activities
J – Information and Communication
K – Financial and Insurance Activities (excludes NACE code 64.20 Activities of holding companies)
L – Real Estate Activities
M – Professional, Scientific and Technical Activities
N – Administrative and Support Service Activities

3An enterprise birth occurs when an enterprise is created and commences activity. See background notes for full variable definitions.

For further information contact:
Jillian Delaney           021 453 5258 or
AnneMaria Hogan       021 453 5244 or
Donal King                 021 453 5245

E-mail busreg@cso.ie

Business Register Section
Administrative Data Centre
Central Statistics Office
Skehard Road
Cork

30 June 2011

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