##m in non - bank finance providers involved in provision of financing to irish smes. while this synopsis suggests that financing constraints have become a less salient concern in recent years, it is important to recognise that improvements in access to finance for irish smes have been uneven. the observed reduction in decline rates for credit applications is much less pronounced for micro enterprises. these enterprises, who make up close to 92 per cent of all active firms in ireland and 28 per cent of total private sector employment, also report lower levels of credit demand and higher levels of non - application due to bank - related reasons, often referred to as borrower discouragement. however, the economic performance of micro enterprises in terms of profitability, employment rates, and turnover has been similar to that of larger smes during the recent recovery. this suggests that the relationship between bank lenders and smaller borrowers may have systematically changed, potentially resulting from changes in the operating models of banks. while the availability and volume of sme finance have improved over the last five years, the cost of bank lending for smaller firms in ireland remains high relative to peers elsewhere in the euro area, both in absolute terms and relative to the cost of borrowing of local larger companies. in this context, it is important to recognise the high levels of concentration in the sme bank lending market : the share of the three largest banks in new sme loans in the first quarter of this year was 93 per cent. the crisis saw the exit of a number of banks from the irish market : the maintenance of the post - crisis recovery and the cleaning up of legacy debts are preconditions for the entry of new lenders into the irish market. furthermore, the fragmentation of the european financial system will be eroded if more progress is achieved in the development of banking union and capital markets union in europe. there is also a significant role played by non - bank finance providers in the sme market. these entities facilitate activities such as leasing, invoice discounting, trade finance, and peer - to - peer lending. venture capital funding, another form of external financing available primarily to high - productivity, high - potential firms, has increased substantially in recent years. in 2017, almost €1 billion was raised through this channel, with most of this being sourced from international investors. the number of firms in receipt of this funding is however extremely small in the context of the entire sme sector, around 175 or so per annum, and these firms are mostly concentrated in

and confidence in organisations by educating, informing, and supporting directors to lead successfully ". successful leadership, strong corporate governance, and information flow build public trust, which is so vitally important to leaders in the public, private and non - profit sectors. but for those whose roles are in the service of the public, that trust element has particular significance. we can only deliver on public expectations if we continue to develop ourselves as leaders through the relentless pursuit of further knowledge and through engaging with and learning from each other. the network that the iod provides is such a valuable platform for this and events such as today's allow us to educate and inform ourselves and to support each other, with the objective of delivering trust and confidence in our organisations. i look forward to the rest of the event. 3 / 4 bis - central bankers'speeches 1 christine lagarde, ecb press conference 2 february 2023 https : / / www. ecb. europa. eu / press / pressconf / 2023 / html / ecb. is230202 ~ 4313651089. en. html 2 with thanks to steven cull for his assistance and advice in preparing this talk. 3'charting the course - leading financial services through complexity and change'remarks by deputy governor sharon donnery at financial services ireland annual dinner - 17 november 2022 4 / 4 bis - central bankers'speeches