Last week the WDC published two new WDC Insights publications. They were both based on our analysis of the CSO’s Business Demography 2014 data which measures active enterprises in the business economy. The publications were:
In a previous blog, I outlined our analysis of the data for the Western Region. In this blog the focus will be on the analysis at county level. It should be noted that in this CSO dataset, enterprises are assigned to the county where they are registered with the Revenue Commissioners. A business with multiple locations (e.g. chain stores, multinationals) is counted once. Although this limits the data somewhat, and tends to increase the numbers for Dublin, it is a good reflection of local business activity.
Change in enterprise numbers in western counties since 2008
There were a total of 40,797 active enterprises in the Western Region in 2014. Galway had the highest number at just over 13,000, while there were 1,750 registered in Leitrim (Table 1). All western counties experienced a decline in enterprise numbers between 2008 and 2014 that was greater than the national average (-2.4%). At -13.4% Donegal had the second highest decline in Ireland (after Monaghan).
Not surprisingly, the sector which declined most in all counties was Construction. Wholesale & Retail also declined across all counties and most strongly in Donegal and Clare – possibly influenced by their proximity to other large retail centres. Accommodation & Food Service declined across most counties, especially Clare. Combined with a large decline in Transportation & Storage, this may be due to reduced flights into Shannon airport.
In general the knowledge services sectors performed best. ICT, professional and financial services grew strongly in all counties (with only Clare having a decline in ICT services). Despite this growth however, these sectors continue to play a relatively small role in the enterprise base of most western counties.
Enterprise base of western counties
Construction and Wholesale & Retail are the largest enterprise sectors in every county (Fig. 1). In the highly rural counties of Roscommon, Mayo and Donegal 34-36% of enterprises are in the traditional sectors of Industry and Construction, while in the more urban counties of Clare and Sligo it is around 30%. In Donegal and Leitrim over 40% of enterprises are in the local services of retail, accommodation and transport which rely on domestic spending and tourism. These activities play a key role in the enterprise base of all counties, though Galway’s more diverse enterprise mix means it is least reliant on them.
Galway city and Sligo town are strong regional centres for knowledge service firms and this is clear from the quite high shares of their enterprises in professional, financial and ICT services. In contrast, these sectors account for only 17% of registered enterprises in Roscommon.
A few examples of particular sectoral enterprise strengths stand out, such as Administration & Support Services in Clare which includes aircraft leasing activities around Shannon and Information & Communications and Financial & Insurance in Galway. Construction remains hugely important to the enterprise profile of the largely rural counties of Roscommon and Mayo.
There is considerable variation across the seven western counties in terms of their enterprise base. In general, counties with a higher share of their population living in urban centres (Galway, Clare and Sligo) tend to have a greater share of knowledge services firms and lower reliance on traditional sectors. The general pattern since 2008 has been one of growth in knowledge services but decline in Construction and local services, a similar pattern to employment trends. This pattern has a spatial impact as the former tend to concentrate in urban areas while the latter are more important to rural economies.
 It excludes Agriculture, Health, Public Administration and Other Services, as well as activities of holding companies. It includes data on Education but this is not counted in ‘total business economy’ as many of the enterprises are publicly owned and is not analysed here.