Irish recovery driven by just 40pc of firms
Ireland's economic recovery is being driven by just 40pc of firms here, with manufacturing and business services the two biggest growth sectors, according to a new report.
The Intertrade Ireland business monitor for the second quarter of the year also indicates that while businesses continue to experience recovery across the island, it is at a slower pace than in recent quarters.
In the first quarter, 88pc of businesses said they were stable or growing, while 83pc said they were stable or growing in the second quarter.
Intertrade Ireland strategy director Aidan Gough said that "although moderate to rapid growth was found in businesses of all sizes, types and sectors, it was especially prevalent amongst larger firms".
"In particular, the report confirmed that those firms that are exporting and those who take a more strategic approach to growth, such as having a formal business plan in place, are more successful," he added.
The report also found that growth firms were more likely to have innovated across all areas of the business in the past three years. Three quarters of moderate-to-rapid-growth firms had introduced new or improved products or services and almost two thirds had implemented new processes, machinery, equipment or tools.
"This finding confirms results from other reports that we have carried out which show that businesses that are innovating and doing things differently are three times more likely to grow. Excellence in innovation processes, culture and skills is at the core of rapidly growing firms with these businesses more likely to have dedicated R&D staff and a more formal process in place for managing innovation than non-growth firms," Mr Gough said.