Owned and run by the government, at national or local level. The main goal is to provide essential services for the public — not to make a profit.

Two types:
1. Commercial state bodies — earn most of their own revenue. E.g. ESB, Dublin Bus, Irish Rail.
2. Non-commercial state bodies — depend heavily on government funding to run. They earn less than half their costs from sales.

E.g. Irish Rail connects communities by rail across the country.

Owned by individuals or shareholders. The main goal is to make a profit. They compete in the market, pay taxes, and create jobs and wealth for their owners.

They range from small sole traders to large PLCs listed on the stock exchange.

E.g. Ryanair is a private enterprise (PLC) that provides jobs, pays taxes, and drives tourism in Ireland.

Set up to achieve a social, community or charitable goal, not to make a profit. Any surplus is put back into the organisation's work rather than paid out to owners.

They fill gaps that neither government nor private businesses fully cover.

E.g. Barnardos supports vulnerable children and families. The GAA promotes Gaelic games and Irish culture across communities nationwide.

Local: Provides essential services in local communities such as bus routes, electricity and postal services. Employs local workers and supports local supply chains.

National: Provides services that would not be commercially attractive to private businesses (e.g. rural routes). Generates revenue for the government and supports national infrastructure. If government funding is cut, service quality drops and communities lose vital connections.

Local: Creates jobs, brings footfall to town centres, supports local suppliers and generates economic activity through wages and spending.

National: Drives economic growth; generates corporation tax and income tax for the government; promotes innovation, exports and foreign direct investment.

When private businesses close (e.g. restaurants and cafés), towns lose employment, footfall drops and the local economy suffers.

Local: Delivers social and community services that government and private businesses don't fully cover. Supports vulnerable groups and strengthens community bonds.

National: Reduces pressure on state services; promotes social inclusion and cultural identity; employs staff and volunteers; generates tourism. E.g. GAA All-Ireland finals drive large amounts of spending on accommodation, food and transport.

Owners: 1
Liability: Unlimited — if the business fails, personal assets like the owner's home can be taken to pay debts.
Control: Full — owner makes all decisions alone.
Finance: Limited to the owner's own resources.
Legal entity: Not separate from the owner.
Continuity: None — the business ends if the owner dies or stops.

Advantages: easy and cheap to set up; owner keeps all profits; finances stay private.

E.g. A local tradesperson, market stallholder or freelance designer.

Owners: 2–20
Liability: Unlimited — personal assets at risk.
Control: Shared between partners. A Partnership Agreement should set out each partner's role and duties.
Finance: All partners can invest capital.
Legal entity: Not a separate legal entity.
Continuity: None unless the Agreement says otherwise — dissolved if a partner dies.

Advantages: shared risk, skills and decision-making; finances stay private.

E.g. Law firms and accountancy practices.

Owners (shareholders): 1–149
Liability: Limited — owners only lose what they invested.
Control: Shareholders elect a board of directors.
Finance: Can sell shares to friends, family or investors (not the general public).
Legal entity: Separate from its owners — can sue and be sued in its own name.
Continuity: Continues even if a shareholder dies.

Pays 12.5%/15% corporation tax on profits — lower than the 20%/40% PAYE rate a sole trader pays. Must register with the CRO and file annual accounts.

Owners (shareholders): Unlimited — shares are sold to the general public on a stock exchange.
Liability: Limited.
Control: Board of directors; shareholders vote at AGMs.
Finance: Can raise very large sums by selling shares publicly.
Legal entity: Separate; continuity of existence.

Must publish accounts every year. Subject to stock market fluctuations. Expensive to list.

E.g. Ryanair, CRH and Kerry Group are Irish PLCs.

The franchisee pays to use the brand, business model and systems of the franchisor. They own and run the local business, but the brand and intellectual property belong to the franchisor.

Advantages for the franchisee: proven model; brand recognition; training and support; lower risk than starting from scratch.
Disadvantage: must pay ongoing royalties and follow the franchisor's rules. The franchisee does NOT own the brand.

E.g. McDonald's, Supermac's and Spar franchises in Ireland.

Owned and controlled democratically by its members, who share in the profits (or surpluses). Each member has one vote, no matter how much they have invested.

Benefits for members: share in profits; democratic say in decisions; shared risk; support from the wider co-operative network.

E.g. Credit unions across Ireland are financial co-operatives. Glanbia and Kerry Co-operative are large Irish dairy co-operatives.

As a business grows, its needs change. Common reasons to move to a different ownership structure include:

1. Limited liability — moving to Ltd protects the owner's personal assets if the business fails.
2. Continuity of existence — an Ltd company keeps going even if an owner dies, unlike a sole trader or partnership.
3. Access to more capital — Ltd allows up to 149 shareholders; a PLC can raise money from the public.
4. Tax benefits — Ltd pays 12.5%/15% corporation tax vs 20%/40% PAYE for sole traders.

Privatisation: when the government sells a state-owned business to private investors. This can help raise capital, improve efficiency and reduce the burden on government spending.
E.g. Aer Lingus was privatised, allowing private investment and commercial decision-making.

Nationalisation: when the government takes ownership of a private business. Usually done to protect essential services from collapsing, to save jobs or to protect the wider economy.
E.g. The Irish government nationalised AIB and Bank of Ireland in 2008 to prevent the banking system from collapsing.

Regulation makes sure businesses act safely, fairly and responsibly. It:
1. Protects consumers from unsafe products and unfair treatment.
2. Protects employees and makes sure their rights are respected.
3. Protects the environment from harmful business activity.
4. Creates fair competition between businesses by setting standards everyone must follow.
5. Builds public trust and encourages transparency.

An independent check of the business's own financial records and systems, done by a team inside the business. It helps detect fraud, spot inefficiencies and make sure accounts are accurate before external auditors review them.

E.g. An internal audit team at a large Irish retailer checks financial accounts each quarter to make sure everything is recorded correctly.

The process of identifying all the risks a business faces and putting plans in place to reduce them. Businesses create risk registers and contingency plans to limit financial, operational or reputational harm.

E.g. A food company spots the risk of supply chain disruption and builds relationships with backup suppliers to keep production running.

Processes and systems inside the business that make sure it follows all relevant laws, regulations and its own policies. Good compliance reduces the risk of fines, legal action and reputational damage.

E.g. An Irish company runs annual GDPR training for all staff to make sure customer data is handled correctly and legally.

Corporate governance: the systems and processes used to direct and manage the company, including board oversight, accountability and ethical decision-making.

Codes of conduct: written rules that set standards for how employees should behave — covering honesty, customer service and ethical practices. Helps maintain reputation and fairness inside the business.

E.g. Many Irish companies publish employee codes of conduct covering conflicts of interest, data handling and customer interaction.

Independent bodies that enforce laws and standards in specific areas:
1. CCPC — ensures fair competition and protects consumer rights.
2. WRC — enforces employment law and employee protections.
3. EPA — regulates environmental impact; can issue fines for violations.
4. Revenue Commissioners — ensures tax compliance and financial transparency.
5. CRU — regulates the ESB (energy utilities).

Irish laws: businesses must follow legislation passed by the Oireachtas, such as the Consumer Rights Act 2022, the Unfair Dismissals Acts 1977–2015, and the Waste Management Acts.

EU laws: the EU can impose rules on Irish businesses through regulations and directives. GDPR (2018) sets strict rules for every business in the EU on how they collect, use, store and share personal data.

An independent check of a business's financial records carried out by an outside firm. PLCs must have external audits as part of their stock exchange requirements.

External audits build investor confidence and prove to the public that the business is reporting its finances accurately.

E.g. Firms like KPMG or Deloitte conduct external audits of Irish listed companies to verify their published financial statements.

Governance is the system of rules, practices and processes used to direct and control a business. It decides who has the power to make decisions and who is responsible for how the business behaves and performs.

Good governance aims to increase three things:
1. Accountability — decision-makers answer to stakeholders for the outcomes of their decisions.
2. Transparency — honest and clear reporting of performance and decisions.
3. Ethical decision-making — choices that reflect the values and legal obligations of the business.

E.g. An independent board of directors makes sure management decisions are reviewed and that all shareholders' interests are considered.

In practice, good governance includes:
1. A board of directors that includes independent non-executive members.
2. The roles of chairperson and CEO being held by different people.
3. Regular and accurate financial reporting to shareholders.
4. Anti-corruption policies and ethical codes of conduct.
5. Whistleblower protections for staff who report wrongdoing.

Poor governance can lead to fraud, financial collapse and serious reputational damage.

Looks at how a company's operations affect the environment and how it manages environmental risk.

Topics covered include:
1. Carbon emissions and greenhouse gas output.
2. Energy sources — renewable vs fossil fuels.
3. Waste management and recycling practices.
4. Sustainability targets and climate commitments.

E.g. Pollution prevention and reducing carbon output would appear under Environmental in an ESG report.

Looks at how a company treats its employees, customers and the communities it operates in.

Topics covered include:
1. Employee rights, pay equity and working conditions.
2. Diversity, equality and inclusion in the workforce.
3. Consumer protection and data privacy.
4. Community engagement and charitable giving (CSR).
5. Ethical supply chain — making sure suppliers meet fair labour and environmental standards.

E.g. Employee wellbeing programmes and community involvement are Social factors.

Looks at the company's internal controls, ethics, leadership and compliance with laws.

Topics covered include:
1. Board composition and gender balance in senior leadership.
2. Transparency and accuracy of financial reporting.
3. Anti-corruption and ethical business practices.
4. Compliance with financial regulations.

E.g. The structure of the board of directors and anti-corruption policies are Governance factors.

ESG reports help investors judge the long-term strength and ethics of a business. In 2024, new ESG reporting rules became law in Ireland, making ESG disclosures compulsory for large companies. A 2026 CSE study found that over 80% of top European companies publish independent ESG reports.

Benefits:
1. Attracts ethical investors who consider more than just profit.
2. Builds a stronger brand reputation with consumers and communities.
3. Helps spot environmental and social risks before they become costly problems.
4. Keeps the business in line with EU regulations on sustainability.