The Irish Government has taken a number of positive steps in recent months to signal its support for the small and medium enterprise (SME) sector in Ireland and to recognise the important role that SMEs play in the Irish economy and in communities across the country. In May 2024, the Minister for Enterprise Trade and Employment, Peter Burke TD, (the Minister) announced a new SME Package, which includes a range of measures aimed at increasing the supports available to, and lessening the burdens felt by, SMEs and startups. Some of these measures are discussed in this article.
National Enterprise Hub
The Minister recently launched the National Enterprise Hub (the Hub), a key element of the SME Package.
The Hub is a new one-stop-shop where businesses can easily access free information and guidance on over 180 Government supports available from 19 Government departments and agencies. This is the first time information on these resources has been collated in one place, making it easier for business. The service is also staffed by trained advisors, who are available to guide businesses to the best supports and resources to meet their needs.
Users will find information and resources on a range of topics, including productivity, cashflow, attracting talent, sustainability and innovation. There are three key aspects to the Hub:
- Centralised information: access information online on grants and funding, loans, training programs, and expert advice.
- Streamlined search: find the right supports by searching based on specific needs and business size.
- Expert guidance: a dedicated Hub team is available online and by phone to answer questions and give advice.
The aim of the Hub is to make engaging with Government supports more efficient, and to increase the uptake of grants and government schemes, particularly by entrepreneurs and small businesses who have yet to avail of such supports. The Hub is funded by the Department of Enterprise, Trade and Employment (the DETE) and operated by Enterprise Ireland.
Ireland joins Europe Startup Nations Alliance
It was also announced recently that Ireland has become the latest member of the Europe Startup Nations Alliance (ESNA), an organisation established to enhance the European startup ecosystem. Created in 2021, Ireland has become ESNA’s nineteenth member. ESNA is a collaborative entity, dedicated to developing and implementing policies to support startups across Europe. ESNA focuses on implementing the ‘EU Startup Nations Standards of Excellence’, a set of practices designed to foster entrepreneurship in the EU and accelerate the growth and scaling up of startups.
Enterprise Ireland has been nominated to represent Ireland at ESNA and it will receive policy support from the DETE.
The role of finance in scaling the startup ecosystem
On 8 July, the Minister published a report authored by the cross-departmental ‘Finance for Scale Ups Working Group’ (the Group). The report looks at the use of finance as a catalyst to develop a scaling ecosystem for startups in Ireland.
The Group’s aim was to develop actionable recommendations to support “high potential firms” in accessing scaling finance. Following a consultation and a review of peer countries, the Group came up with three policy recommendations to help foster and develop the Irish scaling ecosystem:
- Ensure that scaling finance is available by introducing and promoting funds that will provide scaling finance options to founders and startups.
- Investigate options for pension fund and institutional investor participation in scaling equity funds and encourage corporate venturing in Ireland.
- Review Ireland’s tax model and design instruments that incentivise investment into scaling companies.
The Group also calls for the establishment of an implementation committee to develop practical actions; on which work has already begun.
Support for establishing a business in Ireland
As the Minister noted: “Initiatives like joining ESNA, or exploring ways to better finance our scaling ecosystem or launching our National Enterprise Hub ensure that the business community in Ireland knows it has the full support of Government to help it in every way possible to continue to thrive and prosper.”
Whether you are looking to set up a branch or subsidiary in Ireland, or starting from scratch, incorporating a company in Ireland is a straightforward and inexpensive process, with minimal red tape. Ireland has long had a reputation for being friendly to entrepreneurs and new businesses and it is also a leading jurisdiction for the expansion of foreign companies.
If you are exploring your options, speak to Darran Nangle, who leads ALG's High Growth Programme.
