Supporting Entrepreneurship Julie Sinnamon, CEO

24 Oct 2014

For today 1. Why entrepreneurship is important

2. How Ireland compares

3. National Entrepreneurship Strategy

4. Enterprise Ireland Focus

5. Priorities Going Forward

6. Irish Entrepreneurship Success Stories

Why start-ups are important 1. Jobs: 2/3 of all new jobs

2. Exports: ‘..higher employment and national income intensities of indigenous exports means domestic export growth is one of the core drivers in the Irish economy.’ Constantin Gurdgiev

3. Innovation: entrepreneurship drives innovation in the market place increased productivity and cost efficiencies

4. Sectors of future: start-ups are one of the means by which new sectors take root in Ireland

5. Regional development: start-ups are lifeblood of local economies

Impact on prosperity

Towns and villages across Ireland

Full Time

Jobs

Part-Time

(Other)

Jobs

Dublin 51,224 12,576

Rest of Country 98,494 13,456

Jobs and economic impact EI Clients Employment = 175,570

Spend in the Economy = €20bn

IDA Clients Employment = 161,112

Spend in the Economy = €21bn

€14bn

How Entrepreneuial is Ireland? • #1 country for doing business 2013 by Forbes

• #2 Rate of early stage entrepreneurial in EU-15

• #9 across the EU-28

• Higher percentage of ‘established entrepreneurs’ as a percentage of population

• Higher percentage of start-ups with export dimension (66% in Ireland v 54% european av)

GEM Report 2013 • 32,000 thinking of starting a new business

• 15,200 businesses actually started

• Highest level of new business creation since downturn

• 81% motivated by opportunity perception

• 85% expect to become employers (12% > 20)

• High levels of international growth aspiration

Underlying Strengths: Ireland ranks 15th out of 185 economies in terms of ‘ease of doing

business’ (highest ranked euro area country)

IMD World Competitiveness 2013 ranks Ireland:

• 1st for flexibility and adaptability of workforce

• 1st for attitudes towards globalisation

• 2nd for unit labour costs in manufacturing sector (% change)

• 3rd for availability of skilled labour

Government Priority • ‘Our ambition is for Ireland to be among the most entrepreneurial nations

in the world ... a world-class environment in which to start and grow a buisness’. APJ 2014

• “Two thirds of all new jobs come from start-ups in their first five years of existence.. a range of measures to provide better supports in this area.”

Richard Bruton, TD, Minister for Jobs, Enterprise and Employment

• “Part of my agenda, is to make it as easy as possible to start a business and create jobs....” Minister for Business & Employment, Ged Nash TD

National Entrepreneurship Policy Published Oct 2014

Aims to create 93,000 jobs from start-ups by 2020

– Support the creation of 3,000 more start-ups per annum

– Increase the survival rate in the first five years by 25%

– Improve the capacity of start-ups to grow to scale by 25%

Enterprise Ireland - Focus

Entrepreneurs &

Ambitious Business

Owners

Exports

€18bn

300,000

Jobs

In

Ireland 5,000 Indigenous

companies

How we work

How we support Start-ups:

• Funding, mentoring, incubation

• Foster innovation: new products and processes

faster, better than the competition

• Plug into 3rd level, technology centers and

gateways to develop competitive edge

• Management Development Training

• Market entry - open doors of opportunity for Irish

companies in export markets

All Entrepreneurs

Microenterprise

HPSU

Established Co

Established Cos

of Scale

Broader Remit

15,000 new businesses

LEO Clients

LEOs & EI – working together

• Regional Enterprise Development Plans

• Roll out modular training programmes

• Support evaluations and approvals

committees

• Ensure adequate staffing with the

appropriate skillset to service the Micro

Enterprise community

• Communications group to promote

positive performance and activities across

the LEOs

Centre of

Excellence:

To support a

vibrant micro

enterprise sector

Continue to support HPSUs

Strategic Ambitions

• “Best small country in the world to start a

business”

• Strong Cohort of Start-Ups of Scale

• Higher Numbers that IPO

• Diversity of Promoters, Sectors, & Regions

Challenges

• Scale at all stages of growth

• Exports are key enabler

• Funding

• Capability to scale

• Skills

• The Ireland Offer

• Diversity of founders

Reponding to challenges • Tailored client engagement model – focus on scale

• Lead national export drive

• Support initiatives to increase working capital support for SMEs

• Routes to IPO

• Drive efficiency via lean programmes

• Cascade Management Develpment Programs / peer to peer learning

• Skills Champion

• Champion issues that impact on Ireland’s offer

• Target under-represented sources

Targeting under-represented sources

• Spin-outs from 3rd level

• Females

• Inward entrepreneurs

• Youth

Where do entrepreneurs come

from?

39%

34%

12%

15%

Indigenous

MNCs

3rd Level

Overseas

Most Enterprise Ireland assisted Entrepreneurs come from existing Management

Positions within either indigenous firms or Multi-national Companies

MNCs are a rich source • Trinity Biotech - Founder Jim Walsh ex Cambridge Diagnostics

• Eirgen Pharma - Founder Patsy Carney ex Ivax Pharmaceuticals Ireland

• Socialtram – Founder Gaston Irigoyen ex Youtube and Google

• Moqom – Founders ex Ericsson

• Upfront Analytics – Founders are ex Disney

• AMCS – Founders Jimmy Martin ex Analog Devices and Austin Ryan ex Ericsson

• Asavie – Founder Ralph Shaw is ex Baltimore

• Aspire – Founder Bill Walsh is ex Ericsson

• Aspiracon – Founder Pat Lucey ex Motorola

• Cloudium - Founder John Hickey ex Avocent

• Equiendo – Founder Cyril Murphy ex Esat Digifone

• Cape Technologies – Founder Philip Sharpe ex Ericsson

Inward Entrepreneurs • Target marketing campaign, using Diaspora

• Dedicated €10 million International Start-Up

Fund

• 17 Entrepreneurs (re)located their start-up to

Ireland with EI support in 2013

• From UK, US, France, Argentina, Italy, Hungary,

Spain, Denmark

• Only half are Irish originally

• Majority locate in Dublin

• Majority are in IT sector

Female Entrepreneurs • EI’s ‘Ambitious Women’ program

• Targeted Promotional Campaign

• 41 start-ups supported 2013

– HPSU (14)

– Competitive Start Funds (27)

– 2012 16 projects

Equilume

Eveo Solutions

ViddyAd

Irish Entrepreneur Successes

• Out of Talk Talk

• Fastest Growing Start-up

• Technology developed by Trustev, verifies identities of millions of online customers worldwide

• Technology developed by Zutec was used to build an Asset and Snagging Register in the construction of The Shard, London

First ever, solar-powered, climate-controlled

football stadium Qatar 2022 World Cup

Mercury Engineering in Dublin

Radissens Diagnostics in Cork

First to enable blood analysis aboard the

European Space Station

Irish medical device companies lead the world

in innovation, quality and performance.

Aerogen developed the world’s first aerosol

vaccination device

Going forward • Grow more start-ups - 93,000 jobs projected

• Local Enterprise Office - consistent quality supports

• Exports will continue to be the key engine for indigenous growth and economic prosperity

• Target scale in all business-types from the outset

• Economic growth predictions - Irish economy to out-perform major trading partners

• Opportunities are great for ambitious Irish companies