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

9 Oct 2014

Pictured: Jobs Minister Richard Bruton at last year's Future Jobs Forum. Photo: Conor McCabe Photography

The Irish Government has revealed a new plan aimed at generating 93,000 extra jobs from start-up companies in the next five years.

Key targets in the plan include increasing the number of start-ups by 25pc, resulting in 3,000 more start-ups per annum.

It also includes a target to increase the survival rate in the first five years by 25pc and the capacity of start-ups to grow to scale by 25pc.

Key measures in the plan include doubling the volume of angel funding available to start-ups from €70m currently to €140m.

As well as the measures to double angel funding – critical to the success of start-ups in locations such as Israel and Silicon Valley – the Government aims to increase the amount of co-working and accelerator spaces across Ireland.

The plan was launched this morning by Minister for Jobs Richard Bruton TD together with Minister of State for Business and Employment Ged Nash TD and Minister of State for Skills, Research and Innovation Damien English TD. 

Bruton indicated that consideration in Budget 2015 will be given to share-based remuneration in private companies, seed capital and employment incentives, reforming Capital Gains Tax as well as income tax measures.

Key targets:

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

Named the National Policy Statement on Entrepreneurship in Ireland, it is the stated aim to deliver an “ambitious but realistic” increase in the numbers of start-ups over the next five years.

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 part of 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. 

Create a job, don’t just get a job

“In Ireland we have great entrepreneurs – we just don’t have enough of them,” Minister Bruton said.

Key measures:

  • Doubling amount of angel capital from €70m to €140m
  • Increase the amount of co-working and accelerator space across 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 12pc 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

“Given that two thirds of all new jobs come from start-ups, it is crucial that we improve our supports in this area if we are to create the jobs we need. That is why earlier this year I asked a group of academics and successful entrepreneurs – the people who have actually done it – to come up with a list of recommendations for how we can improve our performance in this area.

“Many of their recommendations were for business or private institutions to implement – but there is much that Government can do to incentivise, support, promote and encourage more people to start businesses – and that is what today’s plan is about. 

“We have set ambitious but realistic targets for ourselves – most importantly, a doubling of the jobs impact of start-ups by 2019.”

Bruton said we are at a critical moment in Irish business history and the time is now for the State to provide more incentives and resources to helping entrepreneurs succeed.

“More and more people in Ireland are choosing to create a job, instead of getting a job – I am convinced that with the right supports from Government we can deliver a step-change in this area and create tens of thousands of jobs that we badly need.”

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years