Irish startup entrepreneurs the key to long term prosperity?

patslatt

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The long term prosperity of the Irish economy probably needs new engines of growth to supplement the Celtic Tiger economic drivers,ie US multinational investment,real estate development and speculation and Dublin's IFSC, any or all of which could experience a sharp downturn. It is interesting to speculate what those new engines might be.

For example,contacts developed in IFSC services could boost growth of related financial services in investment management, investment banking and venture capital. While most of this business is the preserve of major financial centres like London and New York with their massive specialist departments,even the business left over for the small fry in smaller financial centres is lucrative.

The knowledge economy is the government's official favourite for generating future prosperity,yet the government refuses to fund first class science facilites necessary to make that a reality. Worse,it prevents universities from doing so with the ban on third level fees. Promises of third level education funding under the National Development Plan ring hollow: if government funding will be so great in the future,why is it so inadequate today that universities give most places in medicine to foreign students who pay high fees?

A likely engine of growth could be Irish start-up entrepreneurs.If the easy pickings in property were to disappear in a property price decline,many Irish entrepreneurs would be forced to give their attention to other industries and services and the banks would then be more willing to extend finance to businesses besides property.

Governments can play an important role in supporting start-ups. According to the August 22nd Financial Times article on venture capital "Public sector urged to nurture newcomers":

"Instead of...investing in companies that are established,they should make more funds available to companies at the earliest stages of their lives...

"Rather than trying to fill a perceived "funding gap" for companies of a certain size,public sector funds should be spent on encouraging entrepreneurs to make their first steps in business.

"...It should be about investing at a much more early stage in proof of concept grant funding...

"...the US Small Business Innovation Research Programme forces US government agencies to invest 2.5 per cent of their research and development budgets on contracts or grants to small companies.

"Helped by public sector funds such as Scottish Enterprise, Scotland has 3.6 venture-capital-backed companies per 100 people,against just 2.8 for England."
 


Ard-Taoiseach

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Afaik, there's already an infrastructure in place to help start-ups. There's County Enterprise Boards, Enterprise Ireland, Shannon Development, Udarás na Gaeltachta, R&D voucher scheme, the Digital Hub, the Business Expansion Scheme and so on which are their to assist in the foundation of new companies.
 

qtman

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Ard-Taoiseach said:
Afaik, there's already an infrastructure in place to help start-ups. There's County Enterprise Boards, Enterprise Ireland, Shannon Development, Udarás na Gaeltachta, R&D voucher scheme, the Digital Hub, the Business Expansion Scheme and so on which are their to assist in the foundation of new companies.
Enterprise Ireland is the only agency that really matters.

County Enterprise Boards are a joke. They're basically run by political appointees whose primary objective seems to involve having their photograph taken every couple of weeks looking over the shoulder of someone working on a laptop that isn't switched on.
 

Ard-Taoiseach

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qtman said:
Ard-Taoiseach said:
Afaik, there's already an infrastructure in place to help start-ups. There's County Enterprise Boards, Enterprise Ireland, Shannon Development, Udarás na Gaeltachta, R&D voucher scheme, the Digital Hub, the Business Expansion Scheme and so on which are their to assist in the foundation of new companies.
Enterprise Ireland is the only agency that really matters.

.
its not hard to disagree with you there, but there are other important systems in place to allow start-ups to flourish, like the Business Expansion Scheme.
 

Kf

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With the death of the property market as an investment deposit, we could see some money being directed in areas that are productive.
 

Ard-Taoiseach

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Kf said:
With the death of the property market as an investment deposit, we could see some money being directed in areas that are productive.
It certainly makes it more likely, but make no mistake, we don't have some of the highest home-ownership rates in Europe for nothing. Property is in our veins, our very DNA, we won't be divorcing it lightly or quickly, we have invested €5 billion in overseas commercial property since the start of the year, you know.
 
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Another key thing is to help small but established companies to scale up and work towards internationalization.
 

Kf

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Ard-Taoiseach said:
Kf said:
With the death of the property market as an investment deposit, we could see some money being directed in areas that are productive.
It certainly makes it more likely, but make no mistake, we don't have some of the highest home-ownership rates in Europe for nothing. Property is in our veins, our very DNA, we won't be divorcing it lightly or quickly, we have invested €5 billion in overseas commercial property since the start of the year, you know.
That I didn't know - astonishing figure.
 

Ard-Taoiseach

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Kf said:
Ard-Taoiseach said:
Kf said:
With the death of the property market as an investment deposit, we could see some money being directed in areas that are productive.
It certainly makes it more likely, but make no mistake, we don't have some of the highest home-ownership rates in Europe for nothing. Property is in our veins, our very DNA, we won't be divorcing it lightly or quickly, we have invested €5 billion in overseas commercial property since the start of the year, you know.
That I didn't know - astonishing figure.
Yep. here's the link: http://www.independent.ie/business/irish-spend-euro3bn-in-q2-on-overseas-commercial-property-1048035.html
 

HanleyS

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Ard-Taoiseach said:
Afaik, there's already an infrastructure in place to help start-ups. There's County Enterprise Boards, Enterprise Ireland, Shannon Development, Udarás na Gaeltachta, R&D voucher scheme, the Digital Hub, the Business Expansion Scheme and so on which are their to assist in the foundation of new companies.
Sometimes you sound like a robot programmed by Fianna Fail. Do you ever think that perhaps any of the mechanisms of state could be approved or would that be offensive to the memory of Charlie and Dev?
 

HanleyS

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qtman said:
County Enterprise Boards are a joke. They're basically run by political appointees whose primary objective seems to involve having their photograph taken every couple of weeks looking over the shoulder of someone working on a laptop that isn't switched on.
I attended the Entrepreneurs Live talks run by Nova UCD in partnership with the Dun Laoghaire Rathdown Enterprise Board. For that alone I would be grateful to them. There is no other circumstances where I would have had the opportuntity to meet with people like Barry Maloney and Oliver Tattan. I especially enjoyed asking Oliver Tattan about government regulation btw. ;) :lol:
 

nawbut

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brilliant

bennypeavoy said:
the key is within is what you are saying - then unlock the inside out
Absolutely brilliant line. Cheers :lol:

I will live by this maxim.
 

Ard-Taoiseach

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HanleyS said:
Ard-Taoiseach said:
Afaik, there's already an infrastructure in place to help start-ups. There's County Enterprise Boards, Enterprise Ireland, Shannon Development, Udarás na Gaeltachta, R&D voucher scheme, the Digital Hub, the Business Expansion Scheme and so on which are their to assist in the foundation of new companies.
Sometimes you sound like a robot programmed by Fianna Fail. Do you ever think that perhaps any of the mechanisms of state could be approved or would that be offensive to the memory of Charlie and Dev?
Undoubtedly, none of the state-sponsored agencies are perfect and faultless. What I was listing off are all the organisations I can think off-hand that exist to help small companies off the ground. I think the State isn't doing enough to help small companies, witness the level of tax relief for property schemes, but nothing similar for small companies.

Enterprise Ireland are doing their job well, they are helping boost Irish exports and increase staffing levels at the companies they support. I wish they were more ambitious in their targets and more aggressive in their approach.

As well as that, the State could be improving the FÁS course system to produce the right sort of skill set we need for the future.
 

ibis

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Re: brilliant

nawbut said:
bennypeavoy said:
the key is within is what you are saying - then unlock the inside out
Absolutely brilliant line. Cheers :lol:

I will live by this maxim.
That should be relatively easy.
 

HanleyS

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I'm glad to hear your opinions on the situation for entrepreneurial organisations. I thought you were going to take the view that everything is perfect.

I deal with Enterprise Ireland on occasion. I actually had occasion to deal with them yesterday and they were most helpful. I personally can't fault them, but I have heard some criticism in the past of them. The problem with funding startups is in assessing their potential. Every entrepreneur believes passionately in the potential of their idea, otherwise they are not an entrepreneur. It's natural then that when an organisation such as Enterprise Ireland doesn't recognise in the the potential that they themselves see, they get annoyed. A lot of these organisations then go on to achieve great things. Didn't a guy in Liverpool famously refuse to manage The Beatles because he failed to recognise their potential?

I do think that overall Enterprise Ireland do a good job with the limited resources assigned to them. Some others here may have knowledge of companies on the high potential startup program, I myself am only aware that the program exists. They are a tad bit inefficient but you have to recognise that they are a state body and that's the way things are.

I personally believe that the key to economic prosperity in this country is in standing on our own two feet. We have spread ourselves far and wide in the world creating value for foreign organisations at home and abroad. We have had modest successes like Diageo on our own, but they are minnows on the world scale. It's time we took the lessons we have learned since independence and created some world scale organisations of our own. The only way to do these is to reduce dependence on IDA backed FDI and to organically grow our Enterprise Ireland supported indigenous exporters.
 

nawbut

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Re: brilliant

ibis said:
nawbut said:
bennypeavoy said:
the key is within is what you are saying - then unlock the inside out
Absolutely brilliant line. Cheers :lol:

I will live by this maxim.
That should be relatively easy.
You try it - its not as easy as you might think...
 

ergo

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Small business enterprises have to cope with too much red tape and regulation.
 

Ard-Taoiseach

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HanleyS said:
I'm glad to hear your opinions on the situation for entrepreneurial organisations. I thought you were going to take the view that everything is perfect.

I deal with Enterprise Ireland on occasion. I actually had occasion to deal with them yesterday and they were most helpful. I personally can't fault them, but I have heard some criticism in the past of them. The problem with funding startups is in assessing their potential. Every entrepreneur believes passionately in the potential of their idea, otherwise they are not an entrepreneur. It's natural then that when an organisation such as Enterprise Ireland doesn't recognise in the the potential that they themselves see, they get annoyed. A lot of these organisations then go on to achieve great things. Didn't a guy in Liverpool famously refuse to manage The Beatles because he failed to recognise their potential?

I do think that overall Enterprise Ireland do a good job with the limited resources assigned to them. Some others here may have knowledge of companies on the high potential startup program, I myself am only aware that the program exists. They are a tad bit inefficient but you have to recognise that they are a state body and that's the way things are.

I personally believe that the key to economic prosperity in this country is in standing on our own two feet. We have spread ourselves far and wide in the world creating value for foreign organisations at home and abroad. We have had modest successes like Diageo on our own, but they are minnows on the world scale. It's time we took the lessons we have learned since independence and created some world scale organisations of our own. The only way to do these is to reduce dependence on IDA backed FDI and to organically grow our Enterprise Ireland supported indigenous exporters.
Completely agree with you hanleyS in using the Enterprise Ireland as an instrument for creating long-term sustainable value for our country. That is why I take my confident outlook from the fact that the Enterprise ireland Strategy 2005-2007 is quite successful in its aims to increase exports from EI-backed companies and the increase in company numbers and staffing levels.

We have a few home grown successes: Ryanair, CRH, Digicel, Tullow Oil, HM Riverdeep, Smurfit Kappa, Quinn Group and the Kerry Group.

Through Enterprise Ireland, more companies like these can emerge.
 

HanleyS

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Ard-Taoiseach said:
We have a few home grown successes: Ryanair, CRH, Digicel, Tullow Oil, HM Riverdeep, Smurfit Kappa, Quinn Group and the Kerry Group.
Just so as you know the market cap of most of those firms is actually quite low.

Ryanair - $12.5Bn
DigiCel - Not a public company but only worth about $3Bn
Tullow Oil - €5.25Bn
HM Riverdeep - Private company valued at $11Bn
Smurfit Kappa - €3.34Bn
Quinn Group - Quinn's personal net worth was estimated at £3m by Sunday Times Rich list.
Kerry Group - €3.1Bn

The only large company we have on the world scale is Diageo. Their market capitalisation is €38Bn.
 


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