Northern Ireland’s VAT and PAYE-registered business population has climbed to 82,680, marking a 1.9% increase over the year to March 2026, according to official statistics published this week. The figures from the Northern Ireland Statistics and Research Agency (NISRA) represent the twelfth consecutive year of growth, though the data reveals a stark divide between micro-enterprises and larger employers whilst raising questions about regional economic balance.
The Inter-Departmental Business Register (IDBR) statistics, released by the Department for the Economy, provide a snapshot of all businesses registered for Value Added Tax (VAT) and/or operating a Pay As You Earn (PAYE) scheme. The register covers most of the economy, including Agriculture, Production, Construction and Services, but excludes very small businesses that fall below the £90,000 VAT threshold and do not operate a PAYE scheme.
Twelfth Consecutive Year of Growth
The latest data shows the Northern Ireland business population continuing its long-term recovery from the 2008–2014 decline. According to NISRA:
“The number of VAT and/or PAYE registered businesses operating in Northern Ireland has risen by 1,545 (1.9%) to 82,680. This marked the twelfth consecutive year of increase following a period of decline from 2008 to 2014.”
This growth places the total business population at its highest level since the series began in 2010. However, the structure of this growth reveals an economy dominated by very small operations.
Micro-Businesses Dominate the Landscape
The overwhelming majority of Northern Ireland’s registered businesses remain micro-sized operations with fewer than ten employees. The statistics show:
- 89.4% (73,880 businesses) are micro-sized (less than 10 employees)
- Only 2.1% (1,765 businesses) employ 50 or more people
- 38.5% (31,830 businesses) recorded a turnover of less than £100,000
- 13.1% (10,870 businesses) reported turnover exceeding £1 million
“In March 2026, most businesses (89.4% or 73,880) in Northern Ireland were micro-sized businesses (less than 10 employees). Businesses with 50 or more employees accounted for 2.1% of businesses (1,765).”
This concentration of micro-businesses may reflect the £90,000 VAT registration threshold, which allows many small traders to operate below the radar of official registration. Latest figures from the Department for Business and Trade suggest a substantial “hidden” economy: at the start of 2025, an estimated 62,290 unregistered businesses operated in Northern Ireland, up from 57,770 in 2024.
Construction Sector Reaches Record High
All four headline industrial sectors saw growth, though Construction posted the most significant gains. The sector added 975 businesses (2.7%) to reach 11,785—the highest number recorded since the series began in 2010. This continues a trend of strong performance in the built environment, though it contrasts with previous employment data showing construction job losses in 2023.
“The number of businesses in Construction increased by 2.7% (975) to 11,785, which is the highest since the series began in 2010.”
Other sectors saw more modest growth:
- Services: Added 975 businesses (2.2% growth)
- Agriculture: Added 215 businesses (1.1% growth)—the fifth consecutive year of expansion
- Production: Added just 35 businesses (0.6% growth)
Regional Disparities: Belfast Leads, Derry Slows
Whilst all eleven Local Government Districts (LGDs) saw business numbers increase, the geographic distribution remained uneven. Belfast continues to dominate, accounting for 14.6% of all registered businesses (12,100 firms) and recording the largest absolute growth with 285 new businesses (2.4%).
However, the data reveals a dramatic reversal of fortunes for Derry City and Strabane. After leading all districts in percentage growth during 2025, the area recorded the smallest increase in 2026:
“Derry City & Strabane saw both the smallest percentage and absolute growth of all LGDs, increasing by 0.3% or 15 business. This contrasts with 2025 when it had the largest percentage growth of all the LGDs.”
Ards and North Down saw the strongest percentage growth at 2.9% (140 additional businesses), whilst Antrim and Newtownabbey remained the district with the lowest business population at 5.4% of the total.
External Ownership: Disproportionate Employment Share
The statistics highlight the disproportionate economic impact of externally owned businesses. Whilst non-Northern Irish-owned enterprises represent just 2.8% of the business population (2,325 firms), they account for nearly one-quarter (24.3%) of all employees.
Over the five years to 2026, foreign-owned businesses increased by 18.0% (355 businesses), with employment in these enterprises growing by 9.6% (17,660 jobs). This suggests that whilst local entrepreneurship is growing in numbers, externally owned firms continue to drive job creation.
“Non-Northern Irish-owned businesses increased by 18.0% (355) over the five years to 2026. The number of employees working within these enterprises increased markedly by 9.6% (17,660) over the same period.”
Data Gaps and Policy Questions
Whilst the IDBR provides a valuable snapshot, several significant gaps limit its usefulness for assessing economic health. The data does not capture business profitability, survival rates, or the impact of recent economic headwinds, including inflation and post-Brexit trading arrangements. Notably, the register excludes the growing population of unregistered micro-businesses and self-employed workers—now numbering over 62,000—whose economic contribution and working conditions remain largely unmonitored.
Key questions arising from the data include:
- With construction businesses at record levels, what safeguards exist against market saturation or a future correction in the property market?
- Why has Derry City and Strabane’s business growth stalled so dramatically after leading the region in 2025, and what support is needed to sustain momentum in the North West?
- Does the concentration of 24.3% of employment in just 2.8% of (foreign-owned) businesses create vulnerability to external corporate decisions beyond local control?
- How is the £90,000 VAT threshold affecting business formalisation, given the 62,290 unregistered businesses operating alongside the registered population?
- With micro-businesses employing fewer than ten people representing nearly 90% of all firms, what specific policy interventions are needed to support scaling up to sustainable employment levels?
The full Northern Ireland Inter-Departmental Business Register statistics bulletin and detailed tables are available on the NISRA website. The next Business Demography report, which will track business births and deaths, is expected to provide further insight into the survival rates of these newly registered enterprises.