public consultation a national entrepreneurship policy statement for ireland

7/30/2019 Public Consultation a National Entrepreneurship Policy Statement for Ireland

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Public Consultation:

A NationalEntrepreneurshipPolicy Statement for

Ireland

D e p a r t m e n t o f J o b s ,

E n t e r p r i s e a n d I n n o v a t i o n

M a y 2 0 1 3

Invitation to interested parties to submit written views and

suggestions to support the Department’s work on

developing a National Entrepreneurship Policy Statement



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Foreword by Mr. Richard Bruton T.D. Minister for Jobs, Enterprise & Innovation and Mr.

John Perry T.D. Minister of State for Small Business

An ambitious target has been set by the Taoiseach to make Ireland the best small country in the

world in which to do business by 2016. In pursuit of this goal, the Government is using the

Action Plan for Jobs to drive the jobs and enterprise growth agenda. The Government recently published the Action Plan for Jobs 2013, the next step in the Government’s plan to rebuild the

economy and accelerate the transition to a sustainable, jobs-rich economy based on enterprise,

innovation and exports. There are 333 actions in this year’s plan - compared to 270 last year -

involving 16 Departments and 46 agencies or offices, engaged in delivering enterprise and jobs

supporting measures in 2013. There has been wide consultation with interested parties and there

has been deep engagement with industry to try and ensure that the issues we prioritise are the

right ones.

As has been repeated many times in the context of the Action Plan for Jobs, Governments don’t

create jobs, successful businesses and entrepreneurs do, but Government has a key role inmaking sure that the environment is as supportive as possible to allow that to happen. The

challenge for Government, and for the Action Plan for Jobs, is to maximise the impact of all

efforts to support enterprise which in turn supports job creation and protection.

Entrepreneurship is critical to achieving this goal and will continue to play a crucial role in

creating jobs in the Irish economy in the coming years. No one Government Department

controls all the levers to drive entrepreneurial activity. The need for a dedicated policy on

entrepreneurship has been highlighted many times in the recent past, and was re-iterated again,

notably by the Advisory Group on Small Business, in the context of the submissions received

regarding the Action Plan for Jobs 2013.

A National Entrepreneurship Policy will deliver measurable actions which will enhance our

position and ensure that our policies across Government are framed in a coherent way that

recognises the importance of entrepreneurial activity. This will support the next generation of

entrepreneurs who will establish, lead and manage great Irish businesses that offer employment

creation and sustainable economic growth.

The Government needs to be sure that it has put in place the optimal conditions for

entrepreneurship to flourish, and to this end is initiating this public consultation process. We

welcome the opportunity to hear constructive suggestions and advice from all interested parties,so that we can ensure that we have the best conditions in place for entrepreneurs to grow

businesses from small seeds to compete in ever more challenging markets.

__________ ________________________________________________________________________________________ ____________________________________________________________________________________________________________

Richard Bruton T.D. John Perry T.D.

Minister for Jobs, Enterprise & Innovation Minister for Small Business



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Contents

1. Introduction .............................................................................................................. 3

2. Rationale for a National Entrepreneurship Policy Statement .................................. 3

2.1 Global Entrepreneurship Monitor – Entrepreneurship in Ireland .................... 4

2.2 Entrepreneurship as an explicit policy priority ................................................. 6

3. Methodology of the Work plan ................................................................................. 7

4. The Consultation Process ......................................................................................... 8

5. How to submit your views ....................................................................................... 10



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1. Introduction

Entrepreneurial activity is vital as it provides the Irish economy with increased levels of innovation in the market place, increased productivity, cost efficiency as well as job creation.

The Government is a key catalyst to spur this entrepreneurial excellence.

Entrepreneurship is an essential driver of economic growth, and Ireland provides well

established state supports for starting and running a business. However, the economic climate

of recent years has dampened optimism for potential entrepreneurs. That being said, Ireland is

well positioned to capitalise on its strengths and existing support frameworks to increase the

amount of entrepreneurial activity, both in terms of start-up companies and in existing

businesses throughout the economy. This will in turn contribute greatly to GDP growth, global

competitiveness and long term sustainable job creation. Generating fresh solutions to problemsand the ability to create new products, processes or services for a changing market is essential for

any modern economy. This is where the entrepreneur can be a driving force.

This consultation process and the National Entrepreneurship Policy Statement is particularly

focussed on entrepreneurship in terms of start-up companies, and ensuring that the overall

environment is conducive to increasing the levels of people starting up new businesses across all

industry sectors, both domestically trading and export oriented.

2. Rationale for a National Entrepreneurship Policy Statement

Ireland must make a successful transition to an economy built on enterprise, innovation and

exports which is the central plank of our Action Plan for Jobs. To achieve sustainable economic

growth and create meaningful jobs, we need a strong and dynamic range of MNCs, large

enterprises, SMEs and a steady flow of new business start-ups. It is well recognised that small

start-up firms tend to bring about pioneering ideas and that significant job opportunities come

from young firms.

Different policies are required for entrepreneurs and SMEs, respectively. The overriding

objective of SME policy is to strengthen existing businesses, while the main focus of

entrepreneurship policy is to stimulate higher levels of entrepreneurial activity by influencing a

greater supply of entrepreneurs to create new businesses.

A generally supportive business environment for start-up companies now exists in Ireland

evidenced by the presence of entrepreneur boot camps, internationally syndicated investors,

competitive tax and regulatory systems and the introduction of entrepreneur and investor visa

regimes. This environment is conducive not only to indigenous start-ups, but to attracting

overseas entrepreneurs to come and start their business here. In the World Bank’s Doing Business

2013, Ireland is ranked 15th in the world for the ease of doing business, and 10 th for starting a



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business, out of 185 economies. Much of the work arising from the Action Plan for Jobs has

been designed to improve the business environment further such as:

• Improved angel, seed and venture funds and microfinance loans;

• Business Online Vouchers to get more businesses trading online;

• Rationalisation of business licenses to reduce the administrative burden on businesses;

• Reform of the Companies Acts

• Prioritisation of research spend and emphasis on commercialisation.

Ireland can benefit from developing entrepreneurship policy more strategically and formulating

clear policy targets for entrepreneurship performance. This focus on entrepreneurship policy is

part of the suite of State actions to support start-up businesses such as:

1. First stop shops for start-ups at local level through the restructuring of the County Enterprise Boards and the establishment of Local Enterprise Offices in Local

Authorities to reform the system for delivery of support to start-ups and micro

enterprises,

2. the establishment of Microfinance Ireland in October 2012, to provide loans of less

than €25,000 to microenterprises and start-ups who are unable to access bank credit,

3. the establishment by Enterprise Ireland of the new €500,000 Competitive Start Fund

for Female Entrepreneurs aimed at stimulating high potential female-led business

start-ups,

4. the launch of the Employment and Investment Incentive Scheme to provide a tax

incentive to private investors to invest medium-term equity capital in companies,

5. the Seed Capital Scheme (SCS), to encourage individuals currently or formerly in

employment to establish new business ventures. Since November 2011, the Scheme

is open to a much wider range of sectors.

It is timely to step back and consider whether the combined impact of these initiatives is

delivering the optimal strategy mix for supporting entrepreneurship that is appropriate for the

current economic environment. We must also assess the potential for new and alternative

approaches to support a new wave of future entrepreneurs.

A National Entrepreneurship Policy Statement will complement the existing business supportinitiatives, to ensure that the operating environment is more coherent, responsive and conducive

to entrepreneurship.

2.1 Global Entrepreneurship Monitor – Entrepreneurship in Ireland

The Global Entrepreneurship Monitor (GEM) provides a unique measure of the involvement of individuals in entrepreneurship activity. The most recent GEM report (2011) clearly sets out the



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many positives around entrepreneurship in Ireland. For example, there was an increase in the

rate of Total Early-Stage Entrepreneurial Activity in Ireland in 2011 -7.3% up from 6.8% in

2010. A relatively high proportion of Irish entrepreneurs are engaged in medium or high

technology sectors (11%) compared to averages across the OECD (7.3%) and EU (7.9%). Of

great significance to the job creation agenda is the fact that 71% of early stage entrepreneurs

expect to become employers.

It is also very clear that there are areas where challenges remain. The GEM results in recent years

show some worrying trends in Ireland’s entrepreneurship potential and entrepreneurial base.

Reflecting the challenging economic environment, the 2011 results show that among the general

population in Ireland, fewer people perceive entrepreneurial opportunities and fewer people see

entrepreneurship as a good career option. The aspiration to become an entrepreneur also

remains low, and is far below that generally observed across the OECD and EU, at a time when

the perceived need for entrepreneurs is greater than ever.

The forthcoming 2012 results due to be released shortly, show that the prevalence of thosesetting up new businesses is at historically low levels.

It is vital that these trends are arrested and action is taken, particularly in relation to the

development of the spirit and culture of entrepreneurship in Ireland, so that entrepreneurship is

promoted and perceived as a credible alternative to a conventional career in an established firm.

Global Entrepreneurship Monitor 2011

Ireland2011

Ireland2010

OECDaverage

EU27average

Ambition Aspiring to be an entrepreneur 8.5% 8.4% 15.1% 15.3%

Culture Perception of general population- entrepreneurship is a goodcareer choice

46% 52% 57% 59%

Climate See entrepreneurial opportunitiesin local area in the next 6 months

26% 23% 35% 32%

Gender Early stage entrepreneurs Male10.3%Female4.2%

Male9.5%Female3.9%

Male10.5%Female5.8%

Male10.1%Female5.1%

The prevalence of those aspiring to be an entrepreneur was at as very low level (8.5%) in 2011,

continuing the low level from 2010. This is a significant drop from the high levels in previous

years and places Ireland behind the average across the OECD and EU. In Ireland, the rate of

those declaring their aspiration to set up a new business is half the rate evident in the United

States (16.5%) and two thirds that of the UK (11.5%). The high point for the rate at whichindividuals aspired to be an entrepreneur was 2005 at 12.6%.



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The attractiveness of an entrepreneurial career has also continued to decline year on year and is

lower in Ireland than in most other countries – less than half of the adult population (46%)

perceive entrepreneurship as a good career choice, compared to 52% in 2010 and two in three

people (70%) in 2006.

Furthermore, the perception of opportunities (26%) is much lower in Ireland than it is in otherOECD (35%) and EU-27 (32%) countries. This has declined significantly from 46% in 2007.

In Ireland, men are 2.5 times more likely to be an early stage entrepreneur than women. There

has been no sustained narrowing of the gap between men and women early stage entrepreneurs,

as there has been in many other countries. In the US, the gender divide is less pronounced (1.7

to 1) and the UK (1.8 to 1), as it is in some of the Nordic countries, namely Sweden (1.6 to 1)

and Finland (1.9 to 1). The proportion of entrepreneurs in Ireland that are women, does not

reflect the proportion of women in the population (51%) nor does it reflect the proportion of

the labour force which are women(45%).

Also of significant note is the trend of necessity entrepreneurs (31% in 2011 and up from 19% in

2008 and 6% in 2007). Of these, 29% of all early stage start-ups wish merely to create a job for

themselves and do not expect to become employers, compared to 23% in 2010, less than one in

five in 2008 (18%) and one in ten (11%) in 2005.

2.2 Entrepreneurship as an explicit policy priority

Some countries have launched large campaigns to stimulate entrepreneurship, reflecting a strong will to strategize and thereby position entrepreneurship as a key element in the economic growth

agenda. Others have kept the policy focus on established firms and promoted entrepreneurship

as a sub-domain of SME policy.

Of course entrepreneurship cannot be treated separately from the broader enterprise and

economic policies. Coordination and coherence are essential in order to achieve a positive

impact, to benefit from the synergies of the various policies, and to maximise the economic and

social benefits that they can provide.

No one Government Department has control of all the levers that will drive this agenda. Clearly the Department of Jobs, Enterprise & Innovation has a lead role to play, but other departments

such as the Departments of Education & Skills (re-enforcing positive perceptions of

entrepreneurship as a career choice, skills training, financial and business literacy, academic and

professional qualifications), Justice and Equality (2nd chance entrepreneurs), and Finance

(ensuring the taxation system is conducive to entrepreneurial activity) also have a role to play in

enhancing the entrepreneurial dynamic.

A National Entrepreneurship Policy Statement will underpin the importance of entrepreneurship

as an explicit policy priority for fresh job creation, innovation activity and economic growth.



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3. Methodology of the Work plan

The proposed methodology and timing for crafting the Statement is broken down as follows:

Timeline - Quarter 1 and 2 2013: Research, consultation and stakeholder engagement

a) research (to obtain a clear understanding of supports currently available in Ireland and in

selected countries),

b) public consultation (to invite written submissions from interested parties) and

c) engage with relevant stakeholders from business representative organisations, service

providers, academics and entrepreneurs in order to identify gaps, opportunities etc.

Timeline - Quarter 3 2013: Identification/Assessment of opportunities

a) review the research, consultation and stakeholder engagement phase,

b) review current supports both in Ireland and in selected countries and assess the potential

for new or alternative ways of supporting entrepreneurship, and

c) draw conclusions and policy recommendations.

Timeline - Quarter 4 2013: Delivery and Publication

a) Submit policy statement to Government for approval, and

b) Publish policy statement.



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4. The Consultation Process

The purpose of this consultation process is to invite interested parties to submit written views

/observations/suggestions to support the Department’s work on establishing how conducive the

overall environment in Ireland is for entrepreneurship, and identifying gaps, opportunities, weaknesses and untapped potential. It is envisaged that this public consultation process, along

with the relevant stakeholder engagement, will be critically important elements of the work plan.

This process will contribute significantly to the delivery of a National Entrepreneurship Policy

Statement for Ireland which would set out objectives, targets, tasks and responsibilities for

promoting the emergence of new entrepreneurs and facilitating new business start-ups.

The questions have been categorised under specific headings as follows:

1. Current Support Systems

2. Information Availability and Accessing Information3. Business Environment

4. Learning from others/Networking

5. Promoting Entrepreneurship

The headings reflect the proposed chapter titles which will be set out in the National

Entrepreneurship Policy Statement.

Views/ideas and constructive feedback are welcome with regard to any of the following issues:

Current Support Systems

1) The current support systems for entrepreneurs – What supports/initiatives work well? What supports/initiatives don’t work well?

2) What locally based initiatives have worked successfully which could be rolled outto other regions?

3) Do we have the right institutions and supports to assist a fledgling business fromthe ideas stage/ start-up through to development and scaling?

4) Are there gaps in the system, is there potential for new or alternative ways of supporting entrepreneurship?

5) Do different industry sectors have specific needs that justifies a stratifiedapproach? What support instruments are appropriate to different types of business?

6) Have we the appropriate structures to support enterprises that have to be globalfrom birth?

7) Are there opportunities to build stronger linkages with the different state supportstructures?



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8) Entrepreneurship training, basic business/financial skills – are further initiativesrequired to improve basic business and financial skills for entrepreneurs?

9) Access to finance issues for entrepreneurs – do we have a suite of sources of finance that meets the needs of a new enterprise as it moves from proof of

concept to start-up and scaling?

10) Have we appropriate methods in place for setting objectives and setting targetsfor state supports for start-ups?

11) Could there be a greater integration between National and EU policies to supportentrepreneurship?

Information Availability and Accessing Information

12) Is it easy to access information regarding supports available for entrepreneurs?

13) Can information resources be improved?

14) Is the online information helpful/appropriate/sufficient for buddingentrepreneurs?

Business Environment

15) Have we fully exploited the potential for industry clusters in particular regions orsectors which can provide the density and interaction that helps business ideasspawn and creates spin-offs?

16) Existing obstacles for potential entrepreneurs, and 2nd chance honestentrepreneurs – do we impose too high a burden on business people who try butfail? Can we improve supports/the environment to help people to learn from

previous business failures and try again?

17) Can the regulatory environment facing start-ups be improved?

18) Is the range of supports available for commercialisation and technology transfer(e.g. through Enterprise Ireland programmes and Technology Transfer Offices inHEIs) sufficient or are there gaps in the system?

Learning from others/Networking

19) Are we sufficiently tapping into the alumni of experienced and successfulentrepreneurs, (including winners of the various local and Nationalentrepreneurship competitions) who could advise and help fledgling businesses

avoid the pitfalls in the early years?



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20) How can entrepreneurship learning be complimented by inputs from experiencedentrepreneurs?

21) What can we learn from international exemplars of excellence for supportingentrepreneurship? Can they be recreated in Ireland?

Promoting Entrepreneurship

22) Are there specific actions that could be taken to reach out to specific groups whose entrepreneurial potential is not being tapped to its fullest extent? How can we increase entrepreneurship activity among women, seniors, migrants,unemployed and young people?

23) Does our education system support and nurture nascent entrepreneurs?

24) Are there other actions we can take to change the perception of entrepreneurship:

• through positive communication,

• developing the spirit and culture of entrepreneurship in Ireland, so thatentrepreneurship is promoted and perceived as a credible alternative to aconventional career in an established firm,

• celebrating successful entrepreneurship by promoting role models etc.

25) Other issues.

5. How to submit your views

Respondents are requested to make their submissions in writing and, where possible, by email.

With regard to the latter, respondents are requested to ensure that electronic submissions are

furnished in an unprotected format.

Views are requested by Friday 7th June 2013:

1. by email to [email protected]

Or

2. by post to:

Ms. Wendy Gray

SME Policy Unit

Department of Jobs, Enterprise & Innovation

Kildare St.

Dublin 2



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Confidentiality of Submissions

Contributors are requested to note that it is the Department’s policy to treat all submissions

received as being in the public domain unless confidentiality is specifically requested.Respondents are, therefore, requested to clearly identify material they consider to be confidential

and to place same in a separate annex to their response, labelled “confidential”. Where responses

are submitted by email, and those emails include automatically generated notices stating that the

content of same should be treated as confidential, contributors should clarify in the body of their

emails as to whether their comments are to be treated as confidential.

Relevant provisions of Freedom of Information Act 1997 (as amended)

Respondents’ attention is drawn to the fact that information provided to the Department may be

disclosed in response to a request under the Freedom of Information Act. Therefore, should you

consider that any information you provide is commercially sensitive, please identify same, and

specify the reason for its sensitivity. The Department will consult with any potentially affected

respondent regarding information identified as sensitive before making a decision on any

Freedom of Information request.

Queries

Any questions regarding this consultation should be emailed to [email protected] or phone

Ms. Wendy Gray at 01 6312959, Ms. Jessica Powell at 01 6312389, or Mr. Keith Bruton at 01

6312929.

public consultation a national entrepreneurship policy statement for ireland

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