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SMEs in Ireland: contributions, credit and economic crisis

Author

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  • Martina Lawless
  • Fergal McCann
  • Tara McIndoe Calder

Abstract

The small and medium enterprise (SME) segment is regarded as an important contributor to sustainable economic and employment recovery due to their largely indigenous, employment-intensive nature. The recent economic, financial and employment crisis has been particularly sharply felt in this segment of the Irish economy. Taking a wide range of indicators from firm production and bank lending data, this article examines the structure of the SME sector through the pre- and post-crisis period. This highlights the central contribution of SMEs to employment and job creation, with an emphasis on the role of indigenous, non-exporting firms. Descriptive evidence on the misallocation of credit in the run-up to the 2008 crisis, along with a reallocation of lending away from those sectors with highest pre-2008 credit accumulation is also presented.

Suggested Citation

  • Martina Lawless & Fergal McCann & Tara McIndoe Calder, 2014. "SMEs in Ireland: contributions, credit and economic crisis," Policy Studies, Taylor & Francis Journals, vol. 35(5), pages 435-457, September.
    • Handle: RePEc:taf:cposxx:v:35:y:2014:i:5:p:435-457
    DOI: 10.1080/01442872.2014.886681
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