This publication presents an OECD country review of small and medium-sized enterprise (SMEs) and entrepreneurship policy in Ireland. It was prepared at the request of the Department for Business, Enterprise and Innovation (DBEI) in the Irish Government and is part of the series of OECD Country Reviews on SME and Entrepreneurship Policy undertaken by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities. In addition to Ireland, country reviews have covered Canada, Indonesia, Israel, Italy, Kazakhstan, Mexico, Poland, the Russian Federation and Thailand.

SMEs and entrepreneurship are central to Ireland’s challenge of generating a broad-based growth and prosperity that builds on and extends its successes in attracting high quality foreign direct investment. This report examines how to strengthen SMEs and entrepreneurship across the economy. It covers the characteristics and performance of SMEs and entrepreneurship, the business environment, the framework for policy formulation and delivery, national programmes for SMEs and entrepreneurs, the role of local bodies and interventions in tailoring policy to spatial differences, the productivity performance of SMEs, and the design and delivery of business development services.

This chapter summarises the findings and recommendations of the OECD SME and Entrepreneurship Policy country review of Ireland.

This chapter describes the structure and performance of SME and entrepreneurship activity in Ireland. It presents information on numbers of enterprises, employment and value added by enterprise size class. It examines key business demography indicators such as the business entry, exit and churn rate, as well as the proportions of high-growth firms in the business population. It presents evidence on the productivity of SMEs, the level of SME internationalisation and rates of R&D and innovation in SMEs in Ireland, as well as on entrepreneurial attitudes and the rate of early-stage entrepreneurial activity in the Irish population. It also examines spatial disparities in SME and entrepreneurship rates across Ireland. It shows that SMEs make a large contribution to employment. As well as many strengths, such as strong overall SME innovation performance, the Chapter highlights some priorities for policy development related to lagging SME productivity performance, low business entry-exit dynamism, and an under-representation of Irish SMEs in international markets. Lastly, the Chapter comments, where appropriate, on current challenges related to existing data gaps and measurement issues specific to Ireland.

This chapter describes the main strengths and weaknesses of the business environment for SMEs and entrepreneurs in Ireland. It examines macro-economic conditions, labour market conditions, skills and the educational attainment, the tax environment affecting SMEs and entrepreneurs, the regulatory environment, access to finance conditions, infrastructure and energy, trade and foreign direct investment, and ends with a recap of the main recommendations in these areas.

This chapter assesses the strategic framework for SME and entrepreneurship policy in Ireland, including providing leadership for the policy area, consultation with stakeholders, and arrangements for co-ordinating policies and programmes across central government. It further examines how national SME and entrepreneurship programme resources are distributed across lines of policy action and types of SMEs and entrepreneurs as part of a policy portfolio analysis. The system of delivery for national SME and entrepreneurship support programmes is also assessed as well as the mechanisms for providing access to SMEs and entrepreneurs to these programmes. The chapter concludes with recommendations for improving the policy framework and programme delivery.

This chapter examines recently completed, on-going, and planned Government SME and entrepreneurship programmes at national level by thematic area of policy intervention. Each section describes and assesses the main programmes. It focuses on a number of key issues including the ‘take up’ of the programmes by target firms and how well the programmes address the key policy challenges for SME and entrepreneurship in Ireland identified in this report (e.g. increasing productivity, increasing business dynamism, diversification of export markets, etc.). The Chapter concludes with a set of policy recommendations.

This chapter presents information on the local dimension of SME and entrepreneurship policy in Ireland. Despite its small size, Ireland’s economic geography is characterised by significant differences in the vitality of the local entrepreneurship ecosystems underpinning SME and entrepreneurship development across the country. It points to the importance of an increased local focus in SME and entrepreneurship policy with the aim of promoting local entrepreneurship, innovation and industrial diversification based on existing local strengths. It also discusses mechanisms for reinforcing the vertical and horizontal alignment of SME and entrepreneurship policy in Ireland.

This chapter tackles the SME productivity problem in Ireland. Aggregate statistics point to a productivity gap in Ireland. Analysis of microdata reveals that there is a wide dispersion in the productivity of SMEs. The long tail of low productivity SMEs suggests that there is scope for Ireland to boost its productivity by enhancing the diffusion of best practices to laggard SMEs. The causes of low SME productivity in Ireland are discussed, in particular the prolonged use of low-productivity techniques, the potential to improve management practices, and the need to modernise to prepare for challenges such as the digital revolution and entry into export markets. Suggestions are made for the role of policy with regards to several areas pertaining to SME productivity. The Chapter then presents some inspiring policy practice examples from a set of comparator countries, before closing with some policy recommendations.

This chapter describes the current institutions providing business advisory services and support services to small and medium enterprises (SMEs) and entrepreneurs in Ireland, such as enterprise centres and business incubators and accelerators, the support services and programmes offered, and the targeted approaches to attracting and serving specific types of enterprises and their needs. The business support services covered include information, advice, consultancy, and mentoring. It also highlights issues of demand and supply for business advisory and consultancy services and potential gaps in service provision and the methods of ensuring quality in their delivery. The Chapter concludes with recommendations for improving the business advisory and consultancy support system and offered services, including building capacity, and addressing gaps in service to particular types of SMEs.