A new study reveals that the Growth Economy here was growing strongly before the pandemic and was outperforming the equivalent sector in the UK.
The Growth Economy refers to companies which are established for more than two years and which report turnover of between €3-€120m.
Based on this criteria, the report from growth capital investor BGF identified 3,223 growth companies in the economy in 2018, up 51% from the 2,134 such companies in 2014.
The research by BGF also reveals that revenues generated by the Irish Growth Economy in 2018 were one sixth of the revenues of the UK's growth economy, despite the fact that the population of Ireland is one fourteenth that of the UK.
BGF supports growing businesses in Ireland and the UK by providing equity finance in exchange for minority positions.
It is supported here by the Ireland Strategic Investment Fund, AIB, Bank of Ireland and Ulster Bank.
In the past three years, BGF has invested in seven growing businesses and has a number of new investments due to complete in the coming months.
Leo Casey, head of BGF in Ireland, said the strength of this sector of the economy is no accident.
"It is a consequence of long-standing industrial policy where major multinationals were encouraged to set up operations in Ireland and their presence helped develop a dynamic ecosystem of smaller businesses supplying their needs, learning from them and venturing forth themselves," Leo Casey said.
Mr Casey also pointed out to the need for ongoing support for companies in this sector:
"Ireland is a small open economy and that forces fast growing companies to internationalise more quickly than would be the case in other markets. Fast growing companies need access to capital and that is where equity finance from investors like BGF plays an important role," he added.
