Irish state failing to provide incentives for entrepreneurs

Centre Director urges state to provide incentives for Irish entrepreneurs

New research conducted by DCU Business School on behalf of the Irish Venture Capital Association (IVCA) shows that Ireland is falling behind its European counterparts in providing incentives for entrepreneurship. Dr Eric Clinton, Centre Director, is leading this important longitudinal research project in Dublin City University. The findings of the study demonstrate that despite surging growth in Irish SMEs, the Irish state has failed to back entrepreneurs and entrepreneurial practices through incentives. Dr Clinton argues that the state can back Irish entrepreneurial practices through taxation, “New tax incentives should be considered to encourage private capital away from passive assets to fund the future of Irish industry and the productive assets that will power the Irish economy over the next 15 years." 

“New tax incentives should be considered to encourage private capital away from passive assets to fund the future of Irish industry and the productive assets that will power the Irish economy over the next 15 years" - Dr Eric Clinton, National Centre for Family Business 

The report also indicates that potential for growth among Irish SMEs is set to continue into the future. The amount of capital raised by SMEs increased by 115% between the years 2016 and 2018 in comparison to three years previous. Additionally, SME growth has facilitated the creation of 25,000 new 'high value' jobs over a fifteen year period (2003-2018). While public investment in SMEs has fallen considerably in comparison to European states, with Ireland ranking 11th out of 22 European countries for start-ups, venture capital and private equity firms have recognised the growth potential among Irish entrepreneurial ventures. Since 2003, €5billion of investments have been made in Irish SMEs by private equity firms, as well as an additional €3billion investment through syndication with international investors. 

Read the full article 'Republic falling behind in offering incentives for entrepreneurs'.