SHOWING ITS CLASS In association with Enterprise Ireland

Kevin Sherry Head Of High Potential Start-Ups, Entreprise Ireland

The future success of the Irish economy is directly related to its ability to generate and support dynamic high-growth export-focused Irish companies, writes Kevin Sherry

Innovative Irish companies with the potential to grow and internationalise can create sustainable high-value employment and export revenue, thereby increasing national and regional prosperity. Dynamic and successful Irish companies also help to further embed an already strong culture of innovation and entrepreneurship. State support for entrepreneurship, through Enterprise Ireland, is clearly focused on the ongoing creation of new entrepreneur-led businesses with a solid base in knowledge, innovation and intellectual capital. Enterprise Ireland recently exhibited a record 76 high potential start up (HPSUs) companies’ at its annual HPSU showcase event in Dublin. The event, hosted by Micheál Martin T.D., Minister for Enterprise, Trade and Employment and Frank Ryan, CEO Enterprise Ireland involved over 170 entrepreneurs.

Comprehensive Business Support

Commenting on the levels of HPSU generation in 2006, Kevin Sherry, Head of Enterprise Ireland’s High Potential Start-up Division said, “dedicated sector specific teams within Enterprise Ireland work intensively with each new entrepreneur and management team to help build comprehensive business plans and to transform plans into new businesses. The 76 companies in the class of 2006 have benefited from a range of services offered by the Enterprise Ireland HPSU team, including assistance in securing key reference sale and international market access, strategy development supports, management development initiatives, R&D supports and financial assistance.”

Job Creation

Testament to their high growth potential start-up classification, the 76 companies are expected to create 1,259 new jobs and exports worth €47m over the next two years. All the 76 companies are operating in knowledge intensive sectors such as Bio-Technology, Medical Technology, Food, Telecommunications, Electronics and Software.

2006 is the first year for 5 years that the number of new Enterprise Ireland backed high potential start up businesses established in regions outside of Dublin exceeded those established within the Dublin Region, indicative of a strong culture of entrepreneurship throughout the country. It was also an excellent year for start-up’s from the food sector with nine new food companies amongst the class including Broadway Bagels, Kohinoor and Scion Spirits. The Irish food sector makes an enormous contribution to the Irish economy, accounting for exports of €7 billion in 2005; or 65% of total Enterprise Ireland Client Company exports for the year. Recognising the importance of these companies, Enterprise Ireland’s HPSU division is continually focused on supporting and encouraging the establishment of dynamic and innovative Irish food companies.

Female Entrepreneurs - ‘Class of 2006’ pictured with from left to right: Kevin Sherry, Divisional Manager, HPSU Busines Unit, Enterprise Ireland; Minister for Enterprise, Trade and Employment, Micheál Martin, TD and Frank Ryan CEO, Enterprise Ireland

Favouring Self-Employment

So, where did the entrepreneurs come from? Entrepreneurs with industry experience, both in the indigenous and multi national sector, provided the richest source of HPSUs in 2006 with 51% of firms created by individuals leaving existing employment in favour of starting their own business. Serial or repeat entrepreneurs account for 28% of this year’s group of HPSUs – up significantly on previous years, demonstrating a high proportion of individuals who have done it before, enjoyed the experience and are doing it again. Enterprise Ireland has worked hard to establish good relationships with known repeat entrepreneurs and in some cases, have formally brokered relationships between companies seeking funding and serial entrepreneurs.

Female Entrepreneurship

In the Class of 2006 there is a significant and welcome upward swing in the level of female participation. 15 of the 76 companies (20%) in the Class of ’06 had females as members of the senior management team – more than double the number last year. This reflects a focus by Enterprise Ireland on addressing issues particular to female entrepreneurs via a number of events, seminars and information sharing.

Overseas Entrepreneurs

The number of HPSUs started by overseas entrepreneurs continues to be encouraging – 11% of the class came from this source. These entrepreneurs are a particularly valuable resource as they return or come to Ireland with extensive international experience, networks and contacts – real assets to any new business. An interesting and welcome phenomenon of this overseas grouping, is the extent to which the Promoters of these projects locate outside of Dublin. In 2006, 50% of the projects started by overseas or expat entrepreneurs were located outside of Dublin. In 2006, 28% of projects came from ‘3rd level’ as a source (16 projects in total.) 13 of these projects were started by graduates of Enterprise Ireland sponsored Enterprise Platform Programmes.

Contact: If you think you have an idea for a start-up business, with export potential, then contact Enterprise Ireland at startup@enterprise-ireland.com or see www.enterprise-ireland.com