Why Irish family businesses are a trump card in chaotic economic times
Analysis: A focus on Irish family businesses makes sense at a time when world economies are an election, tax change or trade dispute away from disruption
What if Donald Trump lures the multinationals out of Ireland? With ongoing threats of tariffs on EU imports and a broader agenda focused on reshoring American industry, the risk from the US president’s economic policies is no longer hypothetical. Ireland is particularly exposed to this escalating protectionism because of our dependency on foreign direct investment (FDI).
For the past three decades, Ireland has optimised its economy around FDI. Successive governments have created an undeniably attractive offer of low corporate taxes, regulatory stability, a skilled English-speaking workforce and EU market access. As a result, Ireland’s economy is often described through the lens of tech giants and pharmaceutical empires. Apple, Google, Meta, Amazon, Pfizer and other household names mean jobs, exports and corporate tax revenue. These multinationals have driven GDP growth and helped Ireland weather crises from the financial crash to the pandemic.
But this FDI economy is designed for the short term. Its rewards are visible and impressive, but its foundations are precarious. It is built around quarterly earnings, shareholder value and global tax planning. As we are seeing now, those cycles, and loyalties, are not ours to control.
With our economic strength tied to decisions made in Washington, California or Delaware, we are never more than one election, tax reform or trade dispute away from disruption. Trump’s proposal of a 50% tariff on EU imports is just the latest reminder. But it’s part of a broader pattern, as global tax reform is closing the loopholes that made Ireland attractive in the first place. The US is focusing on domestic industry and it’s clear that geopolitical stability can no longer be taken for granted in this volatile, protectionist world.
The real risk isn’t Trump, it’s overconcentration. According to the Department of Finance, just 10 multinationals were responsible for more than half of Ireland’s corporate tax revenue in 2022. In the same year, nearly 70% of our export goods came from foreign-owned firms. That’s dependency not diversification.
But what if we looked away from FDI and shifted our focus toward strengthening indigenous Irish businesses? This is why family businesses matter now more than ever. These businesses don’t trend on Twitter or announce quarterly earnings through a communications expert. They are everywhere, spanning industries such as manufacturing, agrifood, tourism, services and retail.
Family businesses employ over 938,000 people in the Republic of Ireland, some 37% of the national workforce. In Northern Ireland, 70% of businesses are family businesses and employ 284,000 people. In Ireland, more people earn their livelihoods from family-owned businesses than from multinational corporations or public sector jobs. These family businesses anchor local communities – and, crucially, they stay in those communities.
Family businesses don’t leave when conditions get tough. They adapt. They retrain staff, reinvest earnings, and pass on not just employment but a sense of purpose and place. As one founder put it during research interviews, ‘we’re not going anywhere. Our name’s above the door, and our children’s future is tied to this place. 225 families are depending on us’. That statement isn’t just personal, it’s strategic.
Family businesses think in decades, not quarters. That changes how they invest, how they hire and how they respond to shocks. They reinvest profits locally, rather than offshoring them. They often retain staff through downturns. They’re not here for tax advantages or exit strategies. They’re here for the long haul. They plan over generations, which shapes how they invest in people, in skills, and their communities. They train apprentices, sponsor GAA teams and pay local suppliers on time.
Yet, despite their importance, Ireland’s economic model has consistently sidelined these businesses. We’ve built entire agencies around attracting and servicing FDI. We measure success in global rankings and multinational announcements. Meanwhile, family businesses, despite their employment footprint and economic contribution, receive comparatively less strategic attention, less tailored policy, and fewer headlines.
What if that changed? Imagine if just a portion of the policy energy spent on attracting foreign capital was redirected into supporting family business. That could mean better access to scaling finance, stronger supports for intergenerational succession and infrastructure that serves not just global hubs but local economies.
This isn’t an anti-FDI argument as multinationals have brought undeniable benefits, and they will remain an important part of the Irish economy. However, they cannot be the only narrative in the story. The real danger is not Trump or tariffs, but the fragility of a model that depends too heavily on decisions made elsewhere.
As global conditions change, resilience becomes the new competitive edge and the businesses best placed to deliver that are already here. They’re not seeking tax incentives or exit strategies. They’re seeking continuity, stewardship and the chance to hand something down to the next generation.
We’ve built an economy that’s globally connected, but we need one now that’s locally grounded. One rooted in place, people and longer-term thinking. Family businesses can show us how to build an economy that lasts.
Article Source – Why Irish family businesses are a trump card in chaotic economic times