There was a net loss of 4,000 jobs in companies backed by Enterprise Ireland in 2002, according to the agency's end of year statement.
Its client companies created 12,300 new jobs, but this was more than offset by losses of 16,338. The net decline was the first in 10 years.
Exports by Irish businesses increased by around 2% to €11.8 billion in what Enterprise Ireland called 'extremely difficult' international market conditions, particularly in the technology sector.
Today's report says that 25% of the year's job losses were linked to the closure of around 100 of the 3,000 firms backed by Enterprise Ireland.
It blamed the remainder on increased competition in international markets and a slowdown in market growth.
Enterprise Ireland's CEO Dan Flinter said a higher level of activity was expected in 2003, and the pipeline for new start-ups had strengthened during the second half of 2002.
He said the agency would actively support 60 start-ups, with the software sector performing strongly and significant projects in the biotech, photonics and medical devices areas.
