The value and contribution of Ireland's SME sector has been highlighted by the latest European Commission statistics, which show small and medium businesses account for 66.8 per cent of employment in the Irish private sector, says Jim Higgins MEP.
“We have always known Ireland's small to medium businesses are the backbone of the enterprise in this country but with the latest figures published today, we have the statistics to prove just how vital SMEs are,” said Mr Higgins.
The fact-sheet published this week also states that SMEs in Ireland represent 99.5 per cent of the total enterprise stock and account for 47.9 per cent of the economic added value. The figures form part of an overall performance review of the sector across the EU.
In reviewing the Small Business Act (SBA ) in February 2011, the Commission and member states acknowledged strong governance is necessary for successful implementation of the SBA. The Commission's report says Ireland is addressing the need to reduce administrative burden and facilitate access to finance.
“Small businesses have struggled during the recession to keep their doors open and their staff employed. It is important that we aid these people in doing just that in order to reduce our unemployment figures and increase exchequer revenue. Access to credit is a key issue that I often hear representations on and needs to be dealt with,” the North West MEP said.
For 2011, the document notes forecasts point towards a continuing decline of 2.4 per cent in the number of SMEs in Ireland, 0.6 per cent in gross value added, and of 2.1 per cent in employment.
“The good news is that under SBA performance, Ireland scores above or on par with the EU average for most SBA principles. However, progress is deemed 'stagnant' and that is something we must continually work on improving,” the MEP concluded.
