09 October 2014

New plan to create 93,000 extra jobs from start-ups over the next five years

The Government's new plan to create an extra 93,000 jobs from start-up companies was launched today (9th October). Local TD Frances Fitzgerald, Minister for Justice & Equality, said the aim of the plan was to "unleash a new wave of entrepreneurship in Ireland, including among traditionally under-represented groups such as women, young people, migrants and older people".


"Recent Central Bank research shows that start-up companies in the first five years of existence account for two thirds of all new jobs created in Ireland; as a result, in the Action Plan for Jobs the Government committed to develop and implement a plan to increase the number of entrepreneurs in Ireland and thereby support thousands of extra jobs. This is a national plan which will have a real impact at the local level.

"The Government’s National Policy Statement on Entrepreneurship in Ireland represents the first time a Government has published a comprehensive national plan for entrepreneurship. It is the Government’s plan to deliver an ambitious but realistic increase in the numbers of start-ups in Ireland over the next five years.

"The key target contained in the plan is to double the jobs impact of start-ups in Ireland over the next five years, from 93,000 currently. In order to deliver on this we must:

·        Increase the number of start-ups by 25% - representing 3000 more start-ups per annum
·        Increase the survival rate in the first five years by 25% - 1800 more survivors per annum
·        Improve the capacity of start-ups to grow to scale by 25%

"I am particularly pleased at the forward-thinking strategies contained in this document, including new mentoring services for start-ups, a national database of mentors, new entrepreneurship programmes in schools, and new measures to promote entrepreneurship among under-represented groups – including women, young people, migrants and older people".

----------------

Key measures in the plan include:

·        Doubling the volume of funding to start-ups in Ireland from business angel investment. Angel investors are successful entrepreneurs or executives who invest private funds in start-up businesses. Analyses of successful start-up environments around the world, in areas including Israel and Silicon Valley, repeatedly point to the existence of business angel networks as key elements. A total of approximately €70million is currently invested per annum by business angel investors in Ireland.
·        Co-working and accelerator spaces available for start-up businesses right across the country. The LEOs and the Community Enterprise Centres will form a key part of this – and this will be part of a new system of supports for start-ups locally. Included in this will be new competitive calls for funding, following on from the model pioneered successfully in the Ireland’s Best Young Entrepreneur competition, which attracted over 1000 applicants from around the country
·        New mentoring services for start-ups, including a national database of mentors
·        Entrepreneurship programmes in schools, third and fourth level education, and in new apprenticeships  systems
·        New targets for Agencies, including a 12% increase in start-ups supported by Enterprise Ireland by 2015
·        New marketing plan to promote Ireland abroad as a location for international start-ups
·        Measures to promote entrepreneurship among under-represented groups – including women, young people, migrants and older people
·        Specific reductions in the administrative burdens facing start-ups, including the length of time it takes to register a new business and the burden of applying for licences
·        New supports for innovation by start-ups, and ambitious targets for EI and SFI to increase innovation activity by start-ups
·        New measures to support start-ups to sell abroad, including opportunities in supply chain of IDA companies
·        An annual report to the Minister for Jobs, analysing Ireland’s performance in entrepreneurship against domestic and international benchmarks

The plan also sets out a range of issues in the taxation system which, if addressed, could provide a major boost for the prospects for start-ups in Ireland – however consideration of these matters will ultimately be matters for the Minister for Finance and Cabinet in the context of Budget 2015 and future Budgets, including:

·        Share-based remuneration in private companies
·        Seed Capital Scheme and Employment and Investment Incentive
·        Capital Gains Tax
·        Income tax
The measures in the plan will be implemented through the Action Plan for Jobs process in 2015 and future years. It is anticipated that entrepreneurship will be included as a Disruptive Reform in the 2015 plan.
Additional Information:

Key measures in the plan include:

·        Doubling the volume of funding to start-ups in Ireland from business angel investment. Angel investors are successful entrepreneurs or executives who invest private funds in start-up businesses. Analyses of successful start-up environments around the world, in areas including Israel and Silicon Valley, repeatedly point to the existence of business angel networks as key elements. A total of approximately €70million is currently invested per annum by business angel investors in Ireland.
·        Co-working and accelerator spaces available for start-up businesses right across the country. The LEOs and the Community Enterprise Centres will form a key part of this – and this will be part of a new system of supports for start-ups locally. Included in this will be new competitive calls for funding, following on from the model pioneered successfully in the Ireland’s Best Young Entrepreneur competition, which attracted over 1000 applicants from around the country
·        New mentoring services for start-ups, including a national database of mentors
·        Entrepreneurship programmes in schools, third and fourth level education, and in new apprenticeships  systems
·        New targets for Agencies, including a 12% increase in start-ups supported by Enterprise Ireland by 2015
·        New marketing plan to promote Ireland abroad as a location for international start-ups
·        Measures to promote entrepreneurship among under-represented groups – including women, young people, migrants and older people
·        Specific reductions in the administrative burdens facing start-ups, including the length of time it takes to register a new business and the burden of applying for licences
·        New supports for innovation by start-ups, and ambitious targets for EI and SFI to increase innovation activity by start-ups
·        New measures to support start-ups to sell abroad, including opportunities in supply chain of IDA companies
·        An annual report to the Minister for Jobs, analysing Ireland’s performance in entrepreneurship against domestic and international benchmarks

The plan also sets out a range of issues in the taxation system which, if addressed, could provide a major boost for the prospects for start-ups in Ireland – however consideration of these matters will ultimately be matters for the Minister for Finance and Cabinet in the context of Budget 2015 and future Budgets, including:

·        Share-based remuneration in private companies
·        Seed Capital Scheme and Employment and Investment Incentive
·        Capital Gains Tax
·        Income tax
The measures in the plan will be implemented through the Action Plan for Jobs process in 2015 and future years. It is anticipated that entrepreneurship will be included as a Disruptive Reform in the 2015 plan.