Synopsis: Entrepreneurship:

LEVERAGING THE INNOVATION ECOSYSTEM FOR BUSINESS ADVANTAGE: A CROSS-BORDER STUDY December 2012 intertradeireland. com Contents ACKNOWLEDGEMENTS 1 FOREWORD 2 1. INTRODUCTION 4 2. OPEN INNOVATION AND THE ECOSYSTEM 6

Aidan Gough Intertradeireland (chair) Aidan Sweeney Irish Business and Employers'confederation Andrew Gavin Department of Jobs, Enterprise and Innovation Bernadette Mcgahon Intertradeireland Brendan Cremen

University college Dublin Ciaran Mcgarrity Department of Enterprise, Trade and Investment Eddie Friel University of Ulster Eoin Magennis Intertradeireland Ian Hughes Forfás John Smith

Enterprise Ireland John Thompson Queen's university Belfast Kirsty Mcmanus Confederation of British Industry Máire Flanagan Department of the Taoiseach Martin Lyes Enterprise Ireland Niall

In the face of increasing demands for customer value, firms are looking at ways to increase the efficiency and effectiveness of their innovation processes.

On the contrary, the report confirms that the vast majority of these innovative firms are micro-enterprises with less than 10 employees;

they can be found across all sectors of the economy in Ireland and Northern ireland, that innovation activity is not dependent upon the presence of R&d staff

when confined to customers and suppliers. Proximity to local partners is important but there is evidence of cross-border

or beyond and opportunities exist to increase the relevance of, and connections to, the other innovation partners.

and that firms of all sizes and in all sectors of the economy can be innovative.

culture and capabilities that will help firms leverage greater advantage from the innovation ecosystem. 1. Introduction The impetus for this study is the recognition that open systems of innovation offer innovative enterprises

Collaborate on innovation with suppliers, customers, industry networks and competitors; and License-out to gain value from ideas and technologies that do not fit the core strategy of the company.

1 Faster development and market launch of new products and services; More diversity brought to innovation resulting in identification of more opportunities for growth;

and Improved success rate of new products and services by making the innovation process stronger.

Given the close geographic proximity and the complementary support systems cross-border cooperation on the island is intrinsic to such an open system

This report presents the results of a study to identify the broad characteristics, opportunities and barriers to a well-connected innovation ecosystem covering Ireland and Northern ireland from the point of view of the firm.

and resources from the external environment to stay ahead of the competition. 3 As global competition intensifies,

The new understanding of innovation in the knowledgebased economy is that commercially significant innovations are much more likely to emerge where businesses interact

and cooperate to a high degree with their external environment, as catalysts, contributors or collaborators. Serial innovators may draw on higher education institutions for intellectual property and talent, on the financial resources of venture capitalists and angel investors and on the capacities and facilities of other companies, consultants,

suppliers and customers. 2. 2 Open Innovation and SMES Adopting an open approach to innovation may be seen as the preserve of large leading high-tech firms with access to the intellectual and financial resources to explore and experiment

partnerships and attraction of funding and also gain opportunities from larger companies who wish to access their specific resources or knowledge. 2. Open Innovation and the Ecosystem 2 Henry Chesbrough, Open Innovation (Harvard,

UK Public Policy and Open Innovation (Big Innovation Centre, September 2011). 6 11 Ambitious and innovative SMES are disproportionately effective in stimulating economic growth

A study of high-growth firms in Scotland, funded by Scottish Enterprise, provides clear evidence of the heterogeneity of such firms (age, size, sector,

with partnering and long-term relationships being central to their business models as well as a focus on high calibre staff.

and thrive while still helping support the rest of the SME population who are the bedrock of the economy.

and entrepreneurbased economy. It is characterised by the interactions that take place between actors in the ecosystem to facilitate innovation.

on the one hand, for different, better or cheaper products and services and, on the other hand, to mobilise or exploit the opportunities and capacities within their value chains.

European commission, DG Enterprise and Industry, 2010). 8 Colin Mason and Ross Brown, High Growth firms in Scotland (Scottish Enterprise, October 2010). 9 OECD

, High-Growth Enterprises: What Governments Can Do to Make a Difference (2010). 7 12 The entire community works within a wider set of framework conditions defined by policy makers

and they give the character to"the different and competing environments that countries offer to innovating firms".

demand conditions and the degree of competition in the domestic market (including public procurement) and the availability of high quality human resources and infrastructure. 10 As in nature's ecosystems, no single actor in an innovation system functions

Finance the investments required to satisfy the resource needs of companies; Advice and Services the specialised support that innovators require to create

and enhance innovation capability; and Knowledge and IP the source of ideas and know-how that create innovation opportunities.

Figure 2 on page 10 represents Intertradeireland's generic model of an innovation ecosystem depicting the connections and the flow of resources between firms and the other groups of actors within the innovation ecosystem.

and skills, finance, advice and services, knowledge and intellectual property, are exchanged within an ecosystem that is influenced by the prevailing framework conditions

and wealth creation but also in fostering the entrepreneurship, competition and innovation that leads to sustainable growth and development.

Ad hoc cooperation between Invest NI and Enterprise Ireland (eg: Innovation Vouchers scheme; Cross-border intermediaries (such as the IBEC/CBI Joint Business Council;

of market demand. Identify innovation opportunities in response to market demands. Signal interest in innovation to their customers or suppliers.

Innovate by themselves and in cooperation with others. Recruit/retain a cadre of professionals/creatives

in order to innovate. Generate or otherwise source the funds necessary to innovate. Secure any external know-how or technology required.

or services (or whole businesses) to go to scale. Knowledge Intensive Business Services Organisations Provide specialist services,

from designing user interfaces for new products and services through to researching market entry strategies or prior art searches.

Provide access to specialist people and facilities (from interim CEOS to product testing/accreditation. Provide a conduit for knowledge flows between science

Partners for increasing the innovative capacity of firms through human capital, problem solving and new knowledge.

Ireland Northern ireland EU-27 Total number of enterprises 195,000 67,525 20,839, 226 Birth rates of new enterprises 7. 8%6. 5%7. 6

46.8%82%58.4%%of SMES<10 years old 54%67%58%%of all enterprises that are innovation active 59.5%(CIS 2008-2010) 55.0%(UKIS

2009) 51.6%(CIS 2008/10)% of all enterprises that are exporters off the island 19%16%%of all enterprises that are cross-border traders 22%39%Sources:

Overview of the industrial base in Ireland, Northern ireland and the EU-27 Policy makers/Regulators set Framework Conditions Market Conditions Intermediary Bodies Higher education Institutes Business Services

Organisations Financial services Organisations Innovation Support Agencies Customers Firms Suppliers 11 2. 5 Benchmarking the Ecosystem To provide an indication of how well the innovation ecosystem performs,

published innovation performance data from the Innovation Union Scoreboard (IUS) 11 and the Regional Innovation Scoreboard (RIS) 12 has been used to benchmark performance against the EU-27 average and the UK.

There is a gap in the data for financial organisations regarding venture capital in Northern ireland although recent analysis of BVCA data suggests that just over 2%of UK-wide VC investment between 1989 and 2010 was in Northern ireland. 13 From EU-wide metrics Ireland in 2011 lags

significantly behind both the EU-27 average and the UK (see Figure 3). Innovation Ecosystem Actors Firms Financial services Orgs Higher education Institutes Innovation Support Agencies Business Services Orgs Intermediary Bodies Policy makers

CIS/IUS metrics v v v v N. A n. A n. A. Table 3: Relationship between innovation metrics and ecosystem actors 11 The European Innovation Scoreboard (EIS) has been published annually since 2000 and presents key performance metrics for all EU member states.

The Innovation Union Scoreboard 2011 is available to download at ec. europa. eu/enterprise/policies/innovation/files/ius-2011 en. pdf 12 The Regional Innovation Scoreboard (RIS

Northern ireland knowledge economy baseline report 2011 (2011). 12 An innovation ecosystem exists to support an innovation and entrepreneur-based economy.

Patent applications Venture capital Public R&d Expenditure International Scientific Co-Publications Business R&d Expenditure Sales of new to Market and new to Firm Innovations Employment in Knowledge

the vast majority are micro-enterprises with less than 10 employees. Source: Intertradeireland Business Monitor (2011.

or services New/improved processes, machinery, equipment or tools New/improved marketing methods or routes to market New/improved packaging

and shows that development of new or improved products or services is the most commonly undertaken activity:

including marketing (e g. new or improved websites) or investments in new technology (e g. IT upgrades.

Intertradeireland Business Monitor (2011). 040%10 50 20 60 30 70 Export off island Cross Border Not Exporter New/improved products or services

solving problems, implementing new developments and ideas, project management skills, launching new products and services,

or sector Finding external support for new ideas and developments Implementing new developments and ideas Launching new or improved products or services Excellent Very Good Quite Good Neither nor Quite Poor

or sector Finding external support for new ideas and developments Implementing new developments and ideas Launching new or improved products or services (n=689) Firms rating of innovation

and (c) launching new or improved products or services. Looking at the survey results by export orientation, it shows that firms who export off the island regard themselves in a better light than firms who trade cross-border or within their own domestic market.

and opportunities is not unusual, even in traditional innovation processes. However, in the modern open view of innovation,

%Services firms were more likely than firms in the other sectors to use some external input while fewer construction businesses use external support than in the other sectors.

it is difficult to envisage that these firms are not at least engaging with their customers

clients/customers (83%)and suppliers (56%.%A distant third are intermediary bodies and providers of finance.

Innovation support agencies, business services organisations and higher education institutes emerged as the least important partners,

Clients/Customers Suppliers Intermediary Bodies Financial services Organisations Innovation Support Agencies Business Services Organisations Higher education Institutes%0 20 40 60 80

The only exception is that exporters off the island see innovation support agencies and business services organisations as slightly more important than cross-border traders or non-exporters.

while services companies make relatively greater use of industry associations and networks. Manufacturing and agriculture businesses rate innovation support agencies and higher education institutes as being more important innovation partners than do other sectors.

As before, the highest ranking is reserved for those partners within a firm's value chain (customers or suppliers.

Businesses regarded business services organisations as not very important but relatively more effective innovation partners,

Ranking of the effectiveness of external partners by innovative businesses Clients/Customers Suppliers Financial services Organisations Innovation Support Agencies Intermediary Bodies Business Services Organisations Higher education

Businesses trading cross-border were more complimentary about the effectiveness of business services organisations, suppliers and innovation support agencies.

and customers as‘very effective'at supporting their innovations. Firms in Ireland and Northern ireland have the same outlook on the effectiveness of their innovation partners.

These relationships are focused heavily on clients/customers and suppliers, with collaboration generally much less widespread for other partners.

Overall, international partnerships are reported more widely than crossborder ones for links with suppliers, higher education institutes, intermediaries and business services.

International Cross-Border Local%025 50 75 100 Clients Suppliers Intermediary Bodies Business Services Organisations Higher education Institutes Financial services Organisations Innovation

The RAG analysis for all past innovators (Figure 14) indicates the significant importance and effectiveness of customers and suppliers.

financial services organisations, business services organisations and innovation agencies are deemed moderately important and quite effective. A notable aspect of the ecosystem is held the view by firms that higher education institutes are not so important in the working of their ecosystem.

‘quite important'1. 3-2. 3 and‘very important'>2. 3. Framework Conditions Market Conditions Intermediary Bodies Higher education Institutes Business Services Organisations

Financial services Organisations Innovation Support Agencies Customers Firms Suppliers Very Important Importance of actor Effectiveness of actor Very Effective Quite Important Quite Effective Not Important Not very

However, business services organisations are regarded as less important and less effective while higher education institutes and financial services organisations are reported also as less effective.

and has all the constituent parts required to enable an innovation-and entrepreneur-based economy in place,

A notable opportunity for this is to foster a better understanding amongst small firms of how higher education institutes can contribute to supporting innovation.

A further opportunity exists to explore how business services organisations can support innovation in small firms.

While there is limited data to benchmark their contribution, Intertradeireland research from 2009, on the design services sector on the island, suggested that such services were utilised under both because of lack of design companies (the sector is approximately one third the relative size of the UK's) and also a lack of understanding of the application and benefits of such

services. Another aspect of increasing the effectiveness of the innovation ecosystem is need a to develop

and enhance internal firm capabilities and culture. These are important precursors of a firm's ability to benefit from the external knowledge

Rag analysis of innovation ecosystem large firms Framework Conditions Market Conditions Intermediary Bodies Higher education Institutes Business Services Organisations Financial services Organisations Innovation Support

Agencies Customers Firms Suppliers Very Important Importance of actor Effectiveness of actor Very Effective Quite Important Quite Effective Not Important Not very effective Differences with all firms 23

particularly new/improved products and services, packaging and marketing methods. This is consistent with a more discerning international marketplace.

construction and manufacturing combined to have innovated around (a) products and services;(b) packaging or branding;(

although it is difficult to envisage that these businesses are not at least engaging with their customers

and valued the effectiveness of their connections with clients/customers and suppliers, partners within their own value chains.

These relationships are focused heavily on clients/customers and suppliers with collaboration generally much less widespread for other partners.

CLEARING UP THE CONFUSION To listen to many economists, pundits and policymakers discuss the economics of growth it would be easy to be confused by the commonly used terms:

competitiveness, innovation and productivity. These terms are used often almost interchangeably and with little precise meaning.

COMPETITIVENESS With the increased globalization of the economy, the term competitiveness has become ubiquitous. But what does it actually mean?

as how an economy manages the totality of its resources and competencies to increase the prosperity of its population. 3

For example, a printing firm in Michigan that sells printed material to customers across the United states would be traded a firm from the perspective of the Michigan economy,

but a non-traded firm from the perspective of the U s. economy. In contrast, a software firm in Washington that sells software throughout the world would be traded a firm from the state and national perspective.

the term region shall refer to both national and subnational economies). But how do we define health?

but fails to control for the size of a region's traded sector economy, i e. the larger the economy the larger the impact of the value added on competitiveness.

In addition, if a region has vastly more imports even if its traded sectors are producing a large amount,

its economy is not holding its own when it comes to competitiveness. But focusing on trade deficits alone fails to account for the fact that a region might run a surplus

suppressed wages in If you listen to many economists, pundits and policymakers, it is easy to be confused by the commonly used terms:

for such policies would reduce its terms of trade by requiring its residents to give up some of their income to foreign consumers and/or pay higher prices for foreign goods and services.

and import blocking means that we cannot determine with certainty that the U s. economy is uncompetitive.

and Sweden would be on a list of competitive economies (they run trade surpluses while also having relatively high wages and limited discounts).

and the United states (too large a trade deficit even when accounting for foreign subsidies) would likely not make the list of competitive economies.

A COMPETITIVE ECONOMY IS ONE WITH A TRADE SURPLUS, FEW BARRIERS TO IMPORTS, AND LIMITED DISCOUNTS TO EXPORTERS.

but will do little to boost competitiveness as electric utility services are not typically internationally traded.

it's important to understand that economies have three ways to grow over the medium and long term:

THE THREE SOURCES OF ECONOMIC GROWTH 2. PRODUCTIVITY IN ALL INDUSTRIES 3. GROWTH OF HIGH PRODUCTIVITY INDUSTRIES 1. GROWTH IN WORKERS The second the across-the-board growth effect occurs

when a region's productivity increases not by higher productivity industry sectors becoming a larger share of the economy,

The answer depends in part on the size of the economy and to a lesser degree on the type of sector.

The larger the economy, the more important the growth effect is since relatively lower shares of large economies'output are traded in sectors.

Moreover, the more local-serving the sector is, the greater the importance of the growth effect.

a large share of the benefits will flow to the firm's customers around the nation and even around the world in the form of lower prices.

Yet, it would be a mistake to conclude that economies can ignore innovation or competitiveness.

and services will not only be cheaper but better. Spurring competitiveness is important as well. Without competitive sectors, a nation's standard of living will be The lion's share of productivity growth in most nations comes not from changing the sectoral mix to higher-productivity industries

Moreover, as highlighted in Innovation Economics: The Race for Global Advantage, a weak traded sector can have spillover effects on the overall economy,

distorting investment patterns and limiting growth8. Competitive weakness also creates a stiff headwind that other components of growth (e g.,

, non-traded sector innovation and productivity) must struggle to overcome. In fact, this competitive weakness explains many of the current problems faced by the U s. and European economies.

The bottom line is: nations need to have articulated well and distinct strategies addressing competitiveness, innovation and productivity.

, investment in R&d, support for technology transfer and STEM education) that can spur more innovation in all three major sectors of an economy (for profit,

nonprofit and government. 10 Finally, a productivity strategy should examine all major industries and functions in an economy to determine the barriers to growth

and the policies that can promote both the growth and shift effects. This includes support for the development of platform technologies,

global economy nations need to develop three distinct strategies: one for success in innovation, one for international competitiveness and one for productivity.

J. Ezell, Innovation Economics: The Race for Global Advantage (New haven: Yale university Press, 2012. http://globalinnovationrace. com/9. James Manyika et al.

He is also the author of the books Innovation Economics: The Race for Global Advantage (Yale university Press, 2012) and The Past and Future of America's Economy:

Long Waves of Innovation that Power Cycles of Growth (Edward Elgar, 2005. Dr. Atkinson received his Ph d. in City and Regional Planning from the University of north carolina at chapel hill in 1989.

ABOUT ITIF The Information technology and Innovation Foundation (ITIF) is a Washington, D c.-based think tank at the cutting edge of designing innovation strategies and technology policies to create economic opportunities

and improve quality of life in the United states and around the world. Founded in 2006, ITIF is a 501 (c) 3 nonprofit,

Strengthening the Startup Community Report of the Entrepreneurship Forum January 2014 Entrepreneurship in Ireland-1-Foreword Executive Summary 1. Introduction 2. Innovative‘Can-do'Culture 2

. 1. Promote entrepreneurship as an Irish cultural value 2. 2. Education system 2. 3. Encouragement of under-represented groups 3. Mentorship

and connections 4. 3. Accelerators 4. 4. Co-working space 4. 5. Academia/Industry cross-fertilisation 5. Access to Talent 5. 1. Share

based remuneration to employees 5. 2. Skills development programmes 5. 3. Immigration reform 6. Access to Finance 6. 1 Encouraging investment

in startups 6. 2. Crowdfunding 6. 3. Access to credit 6. 4. Ease strain on cash-flow via prompt payments 7. Public Policy 7. 1

. Clear up government structure for helping business 7. 2. Monitoring progress of entrepreneurship policy 7. 3. Information signposting 7. 4. Taxation/Social welfare 8. List of Recommendations

and how the Government and other elements of the entrepreneurship ecosystem are already doing everything right.

and far too much unproductive wastefulness in our current economy to sweep away our current situation as being mere victims of the bloated wrongdoings of previous regimes.

Entrepreneurship is about creating meaningful businesses out of the raw materials of people, ideas and customers.

Ireland needs jobs and industry in order to grow its way out of our economic crisis. Make no mistake;

Therefore the entrepreneurship policy of our country must be viewed with the sense of urgency that our economic survival and our way of life demand.

to get‘signposted'via their Local Enterprise Office (LEO) to get through to the appropriate programmes,

There are powerful disincentives to those taking on the risk of entrepreneurship and many of these are matched not with corresponding gains.

We believe that Ireland has the opportunity to become the most competitive country in Europe

Sean O'sullivan Chair of the Entrepreneurship Forum-5-Introduction The Entrepreneurship Forum was established by the Minister for Jobs,

Enterprise and Innovation in May 2013‘to advise the Minister for Jobs, Enterprise and Innovation on policy in the area of entrepreneurship and to draft appropriate policy conclusions and recommendations

which will support business startups, sustainable growth and long term job creation. The purpose of the Forum's Report is to support the Government's development of a National Entrepreneurship Policy Statement.

The Forum identified 6 distinct goals of a successful entrepreneurship policy: 1. Strengthen the startup community in Ireland 2. Increase the pipeline of entrepreneurs 3. Energise job creation 4. Continue growth of the indigenous export sector 5. Capitalise on Ireland's strengths in growth industries

6. Use underemployed resources In this report, the Entrepreneurship Forum paints the picture of what a strong startup community in Ireland can look like

and presents a tangible set of recommendations for businesses, Government, community organisations, and individuals. The report makes policy suggestions,

First, entrepreneurship in Ireland starts with a culture of engaged citizenship. Engaged citizens are giving of their time

who are focused on their customers, their teams, and their networks. Entrepreneurs must look more toward their peers

To achieve the Entrepreneurship Policy goals the Forum identified the main pillars of an effective startup ecosystem as:

then Ireland must encourage entrepreneurship as a norm rather than an exception. This potential career path must be inspired from a person's early years within the education system.

Develop a National Educational Strategy for Entrepreneurship at all levels of the education system. LEOS in conjunction with Microfinance Ireland, should pilot a new programme for young people who set up their own business.

Microfinance Ireland should ring-fence money for a Micro Youth fund to facilitate youth-led business ventures.

State involvement in the delivery of mentoring services inevitably involves formal structures and procedures which would merely deter potential volunteers and delay the most beneficial forms of mentoring.

The Forum is of the view that State resources currently focused on the provision of oneto-one mentoring services should be scaled down

Every region can have improved startup communities. recommendations recommendations recommendations-7-Co-working spaces are terrific environments for the creation

Building human capital for Ireland also means attracting foreign talent. We highlight recent improvements in immigration policy

which could be made to encourage investment, support lending and ease cashflow strain on the startup community.

Pillar 6, Public Policy An important challenge for Ireland is the coordination and integration of different government policies affecting entrepreneurship.

Capital gains should be taxed at 20%rather than 33%to create incentives for investment in new enterprise.

A National Entrepreneurship Website for startups with social media channels, should be established which contains relevant up-to-date information on services available,

along with links to agencies relevant to establishing and growing a business. An Entrepreneurship Policy Unit should be tasked with coordinating government startup policy in Ireland.

A strong and welcome focus has been placed on entrepreneurship policy in 2013. However, the Forum wishes to see this action as the beginning of a permanent and ongoing commitment to entrepreneurship, rather than a onetime prioritisation.

We present the ideas in this document as a starting point for further work and hope that it will lead to enhanced economic activity,

increased numbers of startups and increased engagement by all groups in the entrepreneurial arena. In addition, each individual can take a step toward active citizenship

and learn about high impact ways that you can help the startup community by visiting bit. ly/Irelandstartups. recommendations recommendations recommendations recommendations-9-Introduction The Entrepreneurship Forum was established by the Minister for Jobs,

Enterprise and Innovation in May 2013‘to advise the Minister for Jobs, Enterprise and Innovation on policy in the area of entrepreneurship and to draft appropriate policy conclusions and recommendations

which will support business startups, sustainable growth and long term job creation. The Forum met six times over the summer of 2013.

The purpose of the Forum's Report is to support the Government's development of a National Entrepreneurship Policy Statement.

As part of the focus on entrepreneurship, the Government also held a public consultation in May 2013 inviting interested parties to submit written views

and suggestions to support the development of a National Entrepreneurship Policy Statement, which will be published at the end of 2013.

In total, 74 written submissions were received and further face-to-face meetings were held throughout the summer and autumn with hundreds of other entrepreneurs and stakeholders.

These views and discussions have been made available to the Forum and have been helpful in developing the Forum's thinking.

They have provided a welcome reality check on the current environment for startups. The Forum is grateful to the many people who have contributed online, by telephone, in writing and in person.

Following investigation, analysis and discussions with a wide variety of stakeholders, the Forum ultimately developed a series of recommendations

entrepreneurship is not something the Government can lead. As much as we would love to think that we can appoint farsighted advisors

and their myriad of new products and services. 1. 1 Importance of Entrepreneurship Recent research underpins the need for Irish policymakers to encourage entrepreneurship.

Entrepreneurship is a fundamental driving force in any economy, but in light of the scale of the unemployment challenge that Ireland is currently facing,

Too few people in Ireland are motivated by entrepreneurship to view it as a personal career option.

if Ireland is to encourage optimal levels of entrepreneurship in the future. To achieve this ambition, entrepreneurship policy must be given a strong and visible focus and must form an integral part of the general Government programme.

Our proposals are offered in the spirit of building a strong, independent indigenous enterprise sector in Ireland.

Each of the Forum's recommendations will make a contribution towards this aim. -10-1 Kauffman Foundation Research Series (July 2013)‘ Firm Formation and Economic growth'.

'2 The 2012 Global Entrepreneurship Monitor Report shows that the rate of early stage entrepreneurship in Ireland is compared 6. 1

to the OECD average at 8. 2%.The rate of early stage entrepreneurs in the US (12.8%)is over twice that of Ireland

%The perception of entrepreneurial opportunities within the next six months in Ireland, at 26%,is lower than the OECD average of 33%.

entrepreneurship is not something the Government can lead 1. Introduction 1. 2 Forum Principles and General Approach The Entrepreneurship Forum was established to support the Government to meet the Taoiseach's goal that, by 2016,

Ireland will be the best small country in the world for doing business. Towards this ambition, the Forum identified 6 distinct goals of a successful entrepreneurship policy:

1. Strengthen the startup community in Ireland 2. Increase the pipeline of entrepreneurs 3. Energise job creation 4. Continue growth of the indigenous export sector 5. Capitalise on Ireland's strengths in growth industries

6. Use underemployed resources Building a strong indigenous enterprise sector is not the sole responsibility of government and its agencies.

etc) to increase the chances that more people discover the opportunity to start and grow their own successful business.

What new or alternative strategies can Ireland adopt to support entrepreneurship performance and improve this ecosystem?

and actions are required to improve the culture and support of all entrepreneurial startup ventures across all business sectors.

The philosophy of the Forum also recognises that people establishing not-for-profit or social enterprises use many of the same skills as people starting a for-profit business,

and they create jobs and social value that is essential to building an inclusive and supportive culture in Ireland.

To achieve the Entrepreneurship Policy goals the Forum identified the main pillars of an effective startup ecosystem.

no matter how wellintentioned entrepreneurship in playing a greater role in Ireland's recovery. While each of these pillars is independently valuable,

and build international enterprises will bring real dividends via economic growth. This solid and continuous growth would solve the sovereign debt problem facing Ireland more quickly

and reliably than any other means. 1. 3 What is Entrepreneurship? Is entrepreneurship self employment? No, that's not it.

The self-employed typically sell their labour to perform a set of tasks, and if they don't please the customer,

but entrepreneurship is more than an individual selling his time or expertise. Entrepreneurs attempt to develop new enterprises:

corporate entities which normally employ staff and grow. Because entrepreneurs try to build a business around a new concept

Not only is entrepreneurship the major innovation and change agent for society, it is also the number one producer of jobs in all leading developed economies in the world.

In noncommunist societies, private industry generates employment and creates the products that our society needs to thrive.

which in turn provides the taxation revenue that allows for the government provision of social and infrastructural services. 1. 4

It is the intention of the Forum that future entrepreneurship activities will grow one hundred thousand jobs in Ireland in the near future,

The Forum acknowledges that the central challenge of entrepreneurship is individual leadership. We can only be successful as a collection of private individuals working on behalf of themselves

Success in an economy is something that requires 10,000 entrepreneurial leaders, each of whom is willing to take risks

and their teams that we will grow our economy. This battle will not be led by government, by one person or by a handful of great industrialists.

On this we can build a fair and just society for all of our citizens. 1. 5 Next Steps Responsibility for drafting the Entrepreneurship Policy Statement now passes to the Department of Jobs,

Enterprise and Innovation and this Report will play a key role in guiding that process.

A strong and welcome focus has been placed on entrepreneurship policy in 2013. The Forum wishes to see this action as the beginning of a permanent and ongoing commitment to entrepreneurship, rather than a onetime prioritisation.

We present the ideas in this document as a starting point for further work, and hope that it will lead to enhanced economic activity, increased numbers of startups and increased engagement by all groups in the entrepreneurial arena.

-12-Roadmap to the report: Highlighting Recommendations Throughout the report, we identify recommendations with a grey highlighted box and two symbols:..

-13-Innovative Can-do Culture The first pillar of a strong entrepreneurial environment is an innovative‘can-do'culture.

Many people in Ireland see America as a country where entrepreneurship is celebrated and ask why can't we have a similar culture in this country as our cousins across the pond?

Innovation, the hallmark of entrepreneurial opportunity, is doubted too often or disregarded in favour of the safe choice.

The Forum's concept of an innovative‘can-do'culture requires ambitious, high-performance, high-growth entrepreneurship

Innovative entrepreneurship stems from the belief that it is not sufficient for companies to be entrepreneurial

cultural values, education system reform and encouragement of under-represented groups as potential entrepreneurs. 2. 1 Promote Entrepreneurship as an Irish Cultural Value It has been suggested that Ireland has a tradition of herding our children into‘overpaid safe havens'.

'We encourage our children to work in‘guaranteed secure'jobs in high-paying areas like the public sector, in multinational corporations or in the professional services fields (eg. accountants, lawyers, doctors.

If true, this may explain why Ireland currently has one of the lowest rates of entrepreneurship in the EU. On the other hand,

one of the highest rates in the EU and similar to the highly entrepreneurial United states where 77%of people hold entrepreneurs in high regard. 3 A strong support culture for entrepreneurship is identified as one where:

and failure is denigrated not. 4. Activity is driven by volunteer efforts. 5. An inclusive attitude prevails. 6. The media plays its part in highlighting the importance of entrepreneurial endeavours. 7. Various competitions

and awards take place to celebrate success and contributions. 8. A choice of accelerators, workshops, and training courses are available. 9. Immigrant entrepreneurs are encouraged to come to the country. 10.

a wealth of industry groups and some of the leading accelerators in Europe. Culture, defined by how individuals interact,

Eurobarometer Survey on Entrepreneurship. 2. Innovative‘Can-do'Culture Individual commitment to a group effort: that's what makes a team work, a company work, a society work,

If Ireland is going to‘up its game'in entrepreneurship, then this ecosystem needs to be far more robust and active.

However, the Government can provide a permissive and supportive environment for the ecosystem to develop

and celebrate entrepreneurship and commend entrepreneurs who have achieved success, particularly those to whom people can relate

If we want to increase the pipeline of people choosing an entrepreneurial career then Ireland must encourage entrepreneurship as a norm rather than an exception.

The Forum recognises that there are many initiatives currently being undertaken to enhance entrepreneurship education and skills development in Ireland

This demonstrates a need for an articulated entrepreneurship education policy/strategy that covers all levels of the education system.

Additionally, the lack of specific entrepreneurship education modules in teacher education programmes creates challenges because most teachers lack the experience to deliver these specialised programmes.

as well as students, should receive some entrepreneurship education. Research from the EU and other European countries has shown that participation in entrepreneurship programmes

and activities have a positive impact on young peoples'connectedness at school, as well as their success in the job market, their tendencies to innovate

and their likelihood to start their own companies. 4 Much progress has been made in Ireland with initiatives such as the County & City Enterprise Boards‘Student Enterprise Awards'5, RTÉ's Junior Dragons'Den

, Foróige's‘Network for Teaching Entrepreneurship',The Young Entrepreneur Programme, 6 and the commercialisation of ideas from the BT Young Scientist & Technology Exhibition giving children role models and structures to participate in.

Innovative enterprises require a pool of work-aware school leavers. There is an immediate need to introduce modules

Network for Teaching Entrepreneurship (NFTE), a worldwide youth entrepreneurship education and development programme, and Foroige, Ireland's youth organisation, have partnered for over a decade to deliver in-school and out-of-school courses,

Information and communications technology (ICT) skills are an essential part of any successful modern enterprise in all areas from marketing through financial systems and logistics.

and 90%of enterprise CEOS, have technical degrees from college. When looking at the businesses that sell-15-4 European commission (2012)- Entrepreneurship Education at School in Europe-European commission

Brussels Danish Foundation for Entrepreneurship: Young Enterprise (2012)- Impact of Entrepreneurship Education in Denmark 2012-Danish Foundation for Entrepreneurship:

Young Enterprise, Copenhagen 5 This acquaints over 16,000 students annually with the concepts behind running their own business. 6 Run in secondary schools and third level institutions across Ireland,

the programme has held 25 events and seen 3, 400 students complete a course in entrepreneurship

since 2007. www. youngentrepreneur. ie 7 A hackathon is an event at which computer programmers and others involved in software development,

including graphic designers, interface designers and project managers, collaborate intensively on software projects. The goal of such events is to enable students to understand the technology that builds our world

so that they may feel engaged in it. products to enterprise customers, the number rises to 90%of CEOS with technical degrees. 8

With English now the primary language of today's world economy, learning a programming language has arguably become more important than learning a second spoken language.

and managed by the LEOS or Enterprise Ireland, as a national registry. This registry could list volunteer entrepreneurs by industry sector to make it easier for schools to engage with the business community

Mentorship and Peer Learning. 1. Develop a National Educational Strategy for Entrepreneurship covering all levels of the education system.

Establish an Entrepreneurship Education group to draft an Entrepreneurship Education Strategy that embeds teaching of entrepreneurship into primary, secondary and thirdlevel schools and colleges,

and skill development programmes. 2. Build ICT skills at secondary level as per the Oireachtas report on Information Communication Technology (ICT) Skills Demand in Ireland (2012) recommendations

There are a number of sectors of our society that are underrepresented in entrepreneurship compared to some of the most entrepreneurial societies in the world.

and seniors. 4. As part of an entrepreneurship cultural awareness campaign, create‘entrepreneur heroes 'which highlight and celebrate role models inclusive of the under-represented profiles (female/youth/immigrants etc.)

Learning from Billion-Dollar Startups, Cowboy Ventures, Techcrunch 2 november 2013. http://techcrunch. com/2013/11/02/welcome-to-the-unicorn-club/Sooner or later,

--Paul Tournier recommendations recommendations 2. 3. 1 Unemployed The Back to Work Enterprise Allowance, administered by the Department of Social Protection,

Firstly, the Back to Work Enterprise Allowance is only attainable if you have been on the‘Live Register'for 12 months.

If we are to prioritise entrepreneurship, then we must fast track those people trying to take up selfemployment from the live register.

The Forum believes that addressing these issues would do much to enhance the entrepreneurial contribution of this section of society. 6. Reduce the time required to be on the Live Register before being eligible for the Back to Work Enterprise allowance. 7. Cut the waiting

time for appointments for unemployed people seeking approval for access to the Back to Work Enterprise Allowance. 8. Improve the payments system for entrepreneurs'grants for unemployed people trying to start a business.

Many Government-led women entrepreneurs'networks exist around the country where women can share ideas for professional growth and innovative entrepreneurship.

Despite these efforts, only 10 percent of the high-potential startups backed by Enterprise Ireland are led woman enterprises,

A successful example of this is the‘National Women's Enterprise Day, 'a two-day event currently organised by Ireland's 35 County and City Enterprise Boards,

an important vehicle seeking to inspire, activate and assist women across Ireland in running their own business.

and inspire female entrepreneurship. The European Network of Mentors for Women Entrepreneurs is also an excellent initiative,

The Forum believes that changes to these current Government approaches would enhance a supportive culture for female entrepreneurship. 9. Continue the programme of targeted and tailored supports for female entrepreneurs. 10.

Any new apprenticeship system adopted in Ireland should recognise and foster entrepreneurship as a valid career option.

an entrepreneurship internship programme could be established whereby a young person can spend time shadowing an entrepreneur

The Dublinbic manages the Guinness Enterprise Centre, the single largest entrepreneurship facility in the country with 60,000 sq ft. of space, over 80 startup companies and 320+employees in one building.

and more established startup and growth companies to offer internship opportunities to‘youth unemployed'persons who are interested in entrepreneurship/startups as a career path.

On completion, participants would be referred to the range of financial and soft supports from Enterprise Ireland/LEOS, Microfinance Ireland, Department of Social Protection, Local Development Companies, etc.

Enterprise Ireland should launch a Competitive Feasibility Fund for Youth Entrepreneurs. Programmes such as these will not solve the youth unemployment problem,

and enhance the role and perception of entrepreneurship among youth. We provide further recommendations regarding youth in the Access to Talent chapter. 12.

Entrepreneurship should be recognised as a career option within any newly designed apprenticeship system. 13. An entrepreneurship internship programme should be established based on the EU funded Erasmus for Young Entrepreneurs programme.

As a pilot initiative, 50 of the larger more established startup and growth companies based in the Guinness Enterprise Centre could be engaged to take one‘youth unemployed'person each to undertake an internship. 14.

LEOS, in conjunction with Microfinance Ireland, should pilot a new programme for young people who set up their own business.

Microfinance Ireland should ring-fence money for a Micro Youth fund to facilitate youth-led ventures. 15.

A Competitive Feasibility Fund for Youth Entrepreneurs should be established by Enterprise Ireland. 2. 3. 4 Immigrants Immigrants to Ireland are educated generally well

or higher compared to 27.1%of Irish nationals. 9 Immigrants are entitled to use the services of the various enterprise support agencies,

Enterprise Ireland should leverage their collaboration with the Higher education Authority (HEA) to develop a tailored enterprise programme that is targeted at immigrants who are postgraduates in Irish Higher education Insitutions HEIS)

Local Enterprise Offices should work directly with immigrant organisations, social groups and places of worship to promote the many services

and supports available to any person wishing to-18-9 CSO (2012) Migration and Diversity. 10 GEM (2012) Entrepreneurship in Ireland recommendations recommendations recommendations establish a business

and to enable immigrant entrepreneurs to fully immerse their businesses in The irish market. 2. 3. 5 Seniors An often forgotten group of potential entrepreneurs are people who may have completed already one career,

We should not miss out on any potential opportunity for this group to support business growth

Senior Enterprise, an EU supported initiative through INTERREG IVB NWE, is designed specifically to encourage a greater involvement with enterprise by those aged over 50.

Exchequer funding for the successful EU supported Senior Enterprise initiative should be sustained when EU funding ceases.

The Forum's stakeholder consultation process with successful entrepreneurs strongly identified mentoring as a critical success factor.

Many types of peer learning and mentoring opportunities emerge in a successful startup community, but in this chapter we focus specifically on peer mentoring groups. 3. 1 Peer Mentoring A central recommendation of this report is to revitalise the entrepreneurial culture of Ireland by developing strong networks of entrepreneurs helping

however many initiatives tend to provide once-off mentoring services paid for by the state.

and the resources currently focused on the provision of one-to-one mentoring services should be scaled down

Free web services to support this are available. 14 Industry efforts to create this national registry are already underway

and process for‘Office Hours to facilitate Entrepreneurship mentoring. Perhaps have this registry be compatible with other volunteer activity requests,

and learn and share from each other in a completely confidential environment. Sandbox16 is another network where members are engaged directly with an international network of similarly minded-23-12 Another widely employed and valuable mentoring structure is a company's Board of directors.

or paid via a relatively small level (1%)of stock options. 13 The Entrepreneurship Forum in conjuction with Ernst & young surveyed some of the country's most successful entrepreneurs (winners and finalists of the EY Entrepreneur of the Year competition).

or monthly basis for an Office Hours style programme. 25 Award winners alumni responded to this question. 14 Possibly using free or inexpensive off-the-shelf web services like http://ohours

perhaps organised and facilitated by industry representative groups around the country. 3. 2 One-to-One Mentoring Based on observations and stakeholder feedback,

the Forum proposes that the State should significantly reduce its role in providing one-to-one mentoring services to achieve a target of 80%unpaid mentoring through peer mentoring groups and 20%paid delivery of one-to-one mentoring.

Instead, participants should be encouraged to seek out peer mentors, network opportunities and expertise that they need.

If paid mentoring services continue to be delivered by State agencies the Forum recommends cutting the charge to unemployed people trying to start a business as a specific measure.

The Forum feels that these examples of volunteer initiatives could be explored further. 3. 3 Skills Development Programmes Enterprise Ireland

as designated by Enterprise Ireland, are able to partake of these types of programmes. We suggest that these programmes constitute the minority of the skills development supports provided by the State

If paid mentoring services are delivered by State agencies, the Forum recommends cutting the charge as a specific measure to support unemployed people trying to start a business.

or money to access such learning opportunities. The Forum holds that every effort should be made to facilitate entrepreneurs in this Respect to this end,

and speakers could offer their services free of charge. The Webinars could be attended live or people could watch the webinar at a later time

positive environment. Successful mentorships are created through: Regular face-to-face meetings scheduled monthly for 1-2 hours of uninterrupted time.

Members of the Entrepreneurship Forum have grown all personally and experienced their businesses grow as a result of participation of mentors.

After failing due to the economic downturn, the peer-to-peer support I received spurred me on to get up

Mentorship and peer to peer learning recommendations-26--27-Vibrant Hotspots of Activity-28-Tech Entrepreneurship in 1980s and 1990s Ireland The 80s and 90s were an exciting time in Ireland

for entrepreneurship in the technology sector. The emergence of digital mobile systems (GSM) and open systems in computing and communications created an environment where even small companies could make an impact in world markets such as banking

telecommunications services and interactive learning that were traditionally the preserve of large multinational companies. During the late 70s and 80s, a significant proportion of the third level graduates from engineering and science courses emigrated to join multinationals in mainland Europe and North america.

Less than a decade later many of these expatriates looked to return home and found a unique confluence of factors in Ireland that promoted innovation.

With little or no funding available to small businesses from venture capital firms, banks or state agencies, the country didn't ostensibly look like fertile startup territory.

Ireland's universities in the 80s had many innovative programmes in computing and communications, which were very current with trends in the industry.

Typical startups of this period were companies such as Kindle (Banking Systems), Aldiscon (Text messaging), Fineos (Insurance), Iona (Enterprise Integration Software), APION (Mobile Web), CBT & Riverdeep

The environment created over the last 5 years may have placed Ireland on the cusp of a similar innovation revolution.

These factors, coupled with an emerging entrepreneurial infrastructure that includes seed capital, shared working spaces and collaborative networks, bodes well for an increase in technology-focused business startups in coming years.

**http://www. oecd. org/science/inno/2754426. pdf A key question frequently asked about entrepreneurship is‘why are some locations highly entrepreneurial and others poor in terms of startup activity?'

In Ireland, adhoc groups and activities like ITLG, Startup Ireland, Startup Grind, Activate Dublin, Open Ireland, Accelerator programmes like Healthxl, Selr8r, Endeavour, Propeller,

Despite entrepreneurship being perceived as a high-profit bloodsport entrepreneurial community services are given almost always without charge

or profit and a substantial proportion of entrepreneurs willingly share their time and advice with others.

such as the public sector financiers, universities, professional services organisations, etc. There are a number of highly engaged government agencies in Ireland with plugged-in

if there is to be an increase in entrepreneurship within Irish communities. Everyone can be a part of,

Their goal is to act as a communications center for the many aspects of startup activity happening in Ireland.

and minds to viewing entrepreneurship as a viable career choice and to help create favourable conditions for the creation of internationally successful Irish startups.

Business Days These types of events serve as opportunities for entrepreneurs and aspiring entrepreneurs to network with each other with the option of attending seminars from guest speakers and obtaining mentoring from experts in their field.

and empowered entrepreneurs who are learning the basics of founding startups and launching successful ventures in an activity packed weekend.

and then it's a 54-hour frenzy of business model creation, coding, designing, and market validation.

The weekends culminate with presentations in front of local entrepreneurial leaders with another opportunity for critical feedback.

Their monthly‘fireside chat'interviews, startup mixers and annual conferences provide ample opportunities to connect with amazing startups

However, awareness of and communication about events is not good enough. 24. Introduce an online business matchmaking service to help connect those with business ideas with potential cofounders. 25.

4. 3 Accelerators‘Accelerators'are considered sometimes‘the new MBA'21. Rather than students paying to go to a business school to learn case studies on how companies succeeded or failed,

an accelerator pays the students (through equity investments in their nascent businesses) to develop their idea into a company over a period of typically 3-6 months.

Accelerators running in Ireland include NDRC Launchpad, Endeavor, Wayra, Health XL, DCU Ryan Academy's Propellor Programme, New Frontiers, Selr8r,

In 2011, three of Ireland's accelerators were ranked in the top eight in Europe22. These programmes generally invite experienced entrepreneurs to lecture

accelerators are generally only available to hightech and high-growth companies with multimillion-dollar global revenue potential.

Like most startups, many teams that join accelerators do not ultimately become successful. However, a significant proportion of‘accelerated'companies do grow much faster

It is established well that many companies are formed because of accelerators that would never have been created without them (dozens per year in Ireland alone.

Most accelerators place their developing companies into big‘open plan'work spaces for optimal cross-learning and cooperation (in this way,

accelerators and co-working spaces are very similar). At the culmination of the accelerator programme, there is typically a Demo Day where investors come to consider the possibility of backing one or more of the launching companies.

In our opinion, Ireland is already benefitting hugely from the presence of several leading accelerator programmes.

-30-19 http://startupgrind. com/ireland/20 Many events in Dublin and Cork are recorded on the community publication Startup Digest,

and updated and curated more frequently with more contributors. 21 http://www. inc. com/flash-steinbeiser/accelerator-or-business-school-whats-best-for-young-entrepreneurs. html,

the Forum proposes that further private sector involvement in accelerators would be a huge support for the startup ecosystem. 26.

Successful entrepreneurs should consider establishing accelerator programmes in their local area, with a mind to investing or encouraging investment in the accelerated companies.

Vertical market accelerators are the avenue most recommended. 4. 4 Co-working spaces The unprecedented rise of co-working spaces has been documented well in some of the world's foremost entrepreneurial ecosystems.

In addition, role models and visual hotspots of activity are important to accelerating the takeup of entrepreneurship by a greater portion of the population.

The Forum suggests that there is no better venue for early stage entrepreneurship than co-working spaces.

and NAMA buildings by introducing a coworking space initiative thereby making use of wasted resources and supporting entrepreneurship.

Plug-and-play style services (internet, printing, telephone, postal and storage facilities) at affordable costs. Co-working spaces usually range from 2,

Frontline Ventures: http://www. slideshare. net/Frontlinevc/theirish-tech-startup-guide Many elements of a co-working space support the entrepreneurial ecosystem:

Event spaces facilitate entrepreneurship education. Networking opportunities increase commercialisation. Open spaces mix early-stage entrepreneurs with accomplished serial entrepreneurs.

Formal and informal mentoring improve startup capabilities. Affordable accessible spaces reduce barriers for retired professionals wanting to create startups.

4. 4. 1 Community Enterprise Centres In the past 25 years over €60 million of state funding has gone into CECS (Community Enterprise Centres) throughout Ireland.

Community Enterprise Centres have significant potential to further-32-23 Most accelerator programmes have good co-working spaces,

Examples of great co-working spaces at accelerators are at Wayra (Dublin Selr8r (Cork), NDRC Launchpad (Dublin.

http://hackerspaces. ie/.24 Digital Hub, Dogpatch Labs, Guinness Enterprise Centre, Coworkinn (IMI Campus). Case study-Limerick Limerick City and County Councils have introduced a new Business

Case study-North Tipperary The project developed by North Tipperary Food Enterprise Centre (Rearcross) Ltd was led a community

and championed by Tipperary North County Enterprise Board, recognised a lack of dedicated food grade industrial workspace as a serious barrier to the establishment and growth potential of food companies in the area.

An independent feasibility study was commissioned in September 2005 to develop an innovative community business model for the establishment of a viable integrated food enterprise centre in North Tipperary.

Agencies sharing the vision for this important food infrastructure asset were Tipperary North County Enterprise Board (€168, 500), Enterprise Ireland Community Enterprise Scheme (€337, 000

and we urge the relevant bodies to strengthen the focus of these Centres around innovative entrepreneurship.

c. examine the North Tipperary Food Enterprise Centre (Rearcross) Ltd model and the Limerick model highlighted in this chapter for suitability for adoption in other areas;

which every stakeholder could build. Additionally the reduction in state funding for HEIS has required academic institutions to source a greater amount of their funding from industry (e g. provision of training programmes, undertaking research, donations, etc.

While universities'primary focus and strength in supporting entrepreneurship is to provide/develop graduates they also have a strong role to play in leveraging their research developments to create new startups.

Enterprise Ireland pays each of the Higher education institutions to host Technology Transfer Offices that are charged with increasing the flow of commercialisation from academic research.

and Enterprise Ireland community recently: that a vibrant ecosystem requires simpler means for companies to engage without‘clouding'the Intellectual Property (IP) ownership.

The irish Research Council also offer the very successful Enterprise Partnership Scheme whereby a postgraduate student can undertake their Phd

SFI and the IRC have recognised increasingly that commercialisation is one of the highest and most noble ways for this research to have impact on the lives of The irish citizen and on the economy as a whole. 30.

Extend the successful IRC‘Enterprise Partnership Scheme 'which enables students to undertake their Phd research through an active engagement

Introduce a de minimus level of HEI/startup collaboration investment (up to €25k), below which IP contracting

or an MBA while conducting their thesis research at a small marginal cost to the university as the student is enrolled already.

These students should have exposure to entrepreneurship or commercialisation before they graduate. 37. Formal recognition should be given to researcher time spent on collaboration with industry in the academic promotion criteria of their institution. 38.

Training on commercialisation or entrepreneurship should be provided to every Phd student and Post Doc via mandatory programmes held every semester by the universities. 40.

Every STEM student (undergraduate and postgraduate) should receive a course on entrepreneurship or product commercialisation as part of their degree.

Unnecessarily difficult structures mean that share ownership-which could actually take more than four years to establish-is triggered on liquidity events, making

Many companies, from multinationals to local companies, already provide internship opportunities either paid or unpaid.

We believe that formalising a programme to enable youth to develop work skills would benefit youth, employers and the economy as a whole.

Ireland's accelerator programmes are also achieving success in attracting foreign entrepreneurs. As mentioned previously

3 of the top 8 accelerator programmes in Europe are in Ireland, which draws a highly competitive and international pool of applicants.

To build on this, the challenge lies in the ease at which these entrepreneurs can establish their business in Ireland on completion of an accelerator programme.

We believe that foreign entrepreneurs accepted into competitive accelerator programmes in Ireland should be given a one-year visa to attend the accelerator programme in Ireland as well as to begin developing the traction of their business in Ireland.

We encourage the Department to consider extending the tech visa to other areas of unmet demand in high skilled areas, such as finance and science.

as well as allowing Irish companies greater access to the Chinese economy, would promote these links. Enabling more immigrants to start-38-32 Kaufmann Foundation,

twenty-four of the top 50 venture-backed companies of 2011 were founded by immigrants (http://upstart. bizjournals. com/news/wire/2013/02/27/immigrants-could-create-jobs. html). 33

http://www. openireland. com 34 Enterprise Ireland approved companies, or IDA approved companies would be trusted parties to ensure that the qualifications of the employee are advanced sufficiently to qualify for the visa,

Enterprise and Innovation. recommendations Open Ireland endeavors to establish Ireland as the top destination for English-speaking tech talent. businesses in Ireland would also support the possibility of increasing export potential

For this reason, we believe that action around accelerator programmes work visas and links with China are timely.

Accommodate Accelerator programmes by allowing up to 3 cofounders admission to come to Ireland for 1 year‘startup accelerator visa'to attend an Accelerator programme. 46.

Allow those that startup companies from an Accelerator programme a process to apply for Visas to stay longer. 47.

Implement the‘trusted parties'work visa approval process as envisioned by the Department of Jobs Enterprise

Expand the tech visa to talent in other areas of unmet demand. -39-recommendations-40--41-Access to Finance Every entrepreneur and business owner has a vision for their company,

which could be made to encourage investment, support lending and ease cashflow strain on the startup community. 6. 1 Encouraging investment in startups A survey by the Entrepreneurship Forum with the help of Ernst & young's Entrepreneur of the Year award winners revealed that the primary source for funding a startup

is from‘bootstrapping'(that is, from customer revenue in conjunction with the entrepreneur's savings. 6. 1. 1 Angel finance

a second source is through‘angels'and family and friends'investment. Within the last 5 years over €25m of pure private money (private cheques written by private individuals) has been invested in startups via the visible business angel marketplace through the Halo Business Angel Partnership and the associated

and this would have a significantly positive impact on the funding environment for startups. 51.

The angel community is regarded as the most effective stimulus for internal investment. Raise awareness of the HBAN network and help its expansion. 6. 1. 2. Venture Finance For a small number of businesses,

later stage growth can be funded by venture capital. The Department of Jobs, Enterprise and Innovation has set-aside €175 million in the 2013-2018 budget with the target of leveraging an additional €525 million in third-party capital for growing Irish startups.

Typical funding rounds for traditional venture capital range from €2m to €5m per round of funding,

and are restricted to those businesses that have obtained a significant degree of marketplace traction, generally in the millions of revenue.

Most startups tend to think of venture capital as a ready source for capital. In fact, the venture capital industry these days is used primarily as business expansion capital after a company has achieved product market fit and just needs to scale.

Angel funding and accelerators are more often a source-42-How are funded entrepreneurial businesses in Ireland?%

%of respondents that used funding source 0%18%36%54%72%90%4%2%7%43%33%4%7%4%4%7

%40%29%6%9%Initial funding Working capital Venture capital Investment from state agency Bank finance Bootstrapped

or self-funded State aid and grants Support or investment from friends/family Angel Investors Source:

Survey of 2013 Ernst&young Entrepreneur Award Winner Alumni n=57 Source of majority funding for most recent entrepreneurial venture Source:

Survey of 2013 Ernst&young Entrepreneur Award Alumni, n=57 6. Access to finance recommendations recommendations for cash (other than customer revenue) for early stage startup

businesses. 6. 1. 2 Employment and Investment Incentive (EIIS) The Forum welcomes the announcement in the 2014 Budget to remove the high earners restriction for EIIS to increase the pool of investors.

However, some further improvements are required to encourage an increased level of external equity investment in companies in the seed,

a. Enable medium-sized enterprises (50-250 employees) in the non-assisted areas35 to avail of the EIIS. b. The EIIS should be amended to increase the period of investment from three to five years. c. Under the EIIS,

allow the full 41%relief be granted from the investment date. d. Eliminate the maximum €150k allowable qualifying investment in any one year under the EIIS.

The irish Technology Leadership Group is to create a Global Irish Investor Group that will support scalingup Irish tech companies with capital, expertise and access to global customers.

One hundred investors will come together to create a Global Irish Investment Fund of €20m to support Ireland's high tech start-up ecosystem.

6. 1. 4 Rebrand existing Seed Capital Scheme to Startup Refunds for Entrepreneurs (SURE) The‘Seed Capital Scheme'enables people to reclaim income tax paid in Ireland in the previous years from the Revenue Commissioners

communication and marketing about this extremely beneficial plan must be improved. A single point of contact should be made available to assist entrepreneurs in accessing this plan.

The Seed Capital Scheme is currently available to companies. The Scheme should also allow for sole traders to be eligible,

a. Under the principle of‘de minimus'investment, it is possible for the existing Seed Capital Scheme plan to be modified to be easier to understand, up to limits of perhaps €250k.

Provide the Seed Capital Scheme in a version that provides‘capital matching'funds of up to 50%of the amount up to €250k, under the same general contribution rules (repayment of up to 6 years income tax.

'Under Ireland's current Regional Aid Map, regions covering 50%of our population are assisted areas'recommendations recommendations recommendations 6. 1. 5 Rewarding continuous investment with deferred CGT

%with this credit only applying on the return of the second investment. It does not defer any taxes now.

Such an incentive would energise smart money putting capital in new growth opportunities. Taxes would still be collected on such capital

when the capital was not being redeployed in startup investment. 55. Allow rollover reinvestment) relief on Capital gains into Irish companies,

either through EIIS, or through investment into a company. Capital gains which are reinvested within a calendar year will not be recognised as gains until such time as they are reinvested not.

Capital gains would retain their original basis value and would become taxed on a final sale of the EII stock. 6. 2 Crowdfunding Crowdfunding is an exciting new form of raising capital that offers real opportunities in the area of alternative finance for startups.

This new financing model is growing in Ireland and is currently unregulated. Crowdfunding can refer both to funding through sales revenue for purchased products (as in Kickstarter

as well as to equity funding for share capital in a company. Entrepreneurs and SMES could ostensibly raise capital from funders,

using social networks with crowdfunding platforms to finance their businesses and projects. The United states and other markets are experimenting with crowdfunding extensively at this time.

No doubt these experiments will yield both disasters and frauds, as well as successes and best practices. The Forum is of the view that it is best to take a‘laissez faire'approach to crowdfunding at this time.

The industry needs time to‘establish itself'in Ireland and should not be overburdened by regulation before the required platforms have been given the time to grow

and develop. Therefore we believe no action by Government is advisable at this time. 6. 3 Access to credit Another area of concern to entrepreneurs is access to credit.

There has been widespread criticism by business lobby groups that banks are not supporting businesses at reasonable levels

if the entrepreneurial ecosystem is to operate in a truly supportive environment. 6. 3. 1 Bank lending Irish SMES'external funding mix is more reliant on commercial banks than almost all other European countries. 36 The Forum acknowledges that various

changes in the funding mix for SME working capital and investment since the crisis and the fact that Irish companies are exposed disproportionately to potential weaknesses in the banking sector, relative to our European competitors.

However, a key area of concern for the Entrepreneurship Forum that has received little attention is the actual terms

liquidity and value of collateral a regulated entity must not impose unreasonable collateral requirements for providing credit facilities,

The SME Credit Demand surveys commissioned by the Department of Finance could be used to measure conditions of sanction with regard to personal guarantees to help gain evidence on the issue.

but there is a dearth of international banks that could help provide a greater degree of competition and international standards in banking.

Competition in banking would help provide better‘manners'to our own indigenous banks, and perhaps force banks to manage their costs

We recognise that that the lack of competition within the banking sector is difficult to solve,

because the entire economy depended on three local banks. That is a mistake we will be paying off for generations. 56.

A private sector Prompt Payments Voluntary Code of conduct is currently being established by the Business Representative Bodies in Ireland, supported by the Department of Jobs, Enterprise and Innovation.

and tax policies that encourage investment and company creation. Secondly, Ireland has quite a number of great existing programmes for capacity building for startup companies, through Local Enterprise Offices (LEOS), Enterprise Ireland and other agencies.

Thirdly, Ireland provides financial grants for a wide variety of starting businesses and individuals looking to create businesses.

policies affecting entrepreneurship. The wide range of programmes impacting entrepreneurship in Ireland illustrates shared responsibilities of various departments and agencies.

For example: There are approximately 3, 000 staff currently employed in agencies related to enterprise supports. There are 5 agencies under the Department of Jobs,

Enterprise and Innovation involved in different aspects of supports for indigenous startups. There are a further 8 agencies under the aegis of the Department of Community Rural and Gaeltacht Affairs, Department of Arts, Sports & Tourism and the Department of agriculture and Food responsible inter alia for enterprise supports in specific sectors or regions.

An overall vision of how the state supports startups is needed, in conjunction with the plethora of programmes that the entrepreneurial community provides for itself.

State providers of advice and support to entrepreneurs need to act as a resource network for each other.

However the State itself, in terms of the delivery of the national entrepreneurship policy, should adopt a more strategic use of networking to ensure coherence,

Unless a new National Entrepreneurship Policy is prioritised and someone is made accountable for its overall day-to-day management

there has been designated no‘entrepreneurship policy unit'within the Government system that seeks to coordinate response and programmes across government for startups.

and coordinator roles for entrepreneurship policy. Policy driver builds interest and commitment among the various elements of the entrepreneurship development system, Convener provides a resource network for building the relationships among the key service providers,

and for creating and agreeing upon work plans and outcomes, Connector ensures that departments and agencies within government are informed

The Department of Jobs, Enterprise and Innovation should create an Entrepreneurship Policy Unit. 7. 2 Monitoring progress of entrepreneurship policy It is important that the Government monitors performance to ensure that actions taken are showing positive results.

It is also crucial that Government funded projects to support entrepreneurship should have included metrics from the start,

Enterprise and Innovation to facilitate performance monitoring. The Department should design an appropriate structure and mechanism for the production of startup information.

Trends in new enterprise creation-self employment/companies. 61. A‘Startup Monitor'should be produced and made publicly available, on a monthly or quarterly basis, by the Department of Jobs,

Enterprise and Innovation to support the tracking of performance of the entrepreneurship policy. 7. 3 Information Signposting Entrepreneurs consistently highlight difficulties in accessing the correct information about startup programme supports from The irish government.

The State Bodies Group chaired by the Department of Finance is currently developing proposals for further targeted communications/marketing of financial supports to SMES.

Furthermore, there are opportunities to enhance existing interactions with entrepreneurs by providing information on Government supports at point of contact

Ireland's egovernment initiative could engage with the newly recommended Entrepreneurship Policy Unit to examine options for improving the workflow efficiencies of a startup

A National Entrepreneurship Website for startups should be established which contains relevant upto-date information on services available

along with links to agencies relevant to establishing and growing a business. This initiative must also use social media channels. 63.

Shop Signposting Role LOCAL ENTERPRISE OFFICES Enterprise Ireland BICS Crafts Council Intertrade Ireland Bord Bia Fáilte Ireland LEADER Teagasc Údarás

na Gaeltachta Western Development Commission development and growth of Irish Enterprises in world markets Crafts Industry North & South Economic Development supports for innovative business

A variety of rates are charged for different types of services and products. To simplify the burden to business,

the Forum emphasised the need for new and renewed measures to allow entrepreneurship to continue to contribute significantly to jobs, competitiveness, innovation, productivity increases, wealth creation and growth in communities across the country.

Currently, high capital gains and personal income taxes combine to disincentivise reinvestment in Irish enterprise, except through highly complicated financial structures and by external parties.

Improving social insurance supports for the self-employed is an important way for Government to demonstrate that entrepreneurship is a priority.

and also covered some long-term issues to support an entrepreneurial spirit in the economy. The key short term recommendations were:

1. Improvements to the EIIS and Seed Capital Scheme (as detailed in Chapter 6 Access to Finance.

For florists, provide a brochure which illustrates the different tax rates between flowers as plants and flowers as cut flowers and performing services such as planting flowers, etc. recommendations 65.

as that results in a‘black hole'economy, an economy that sucks out its most successful participants.

High taxes discourage work, savings, investment, risktaking and enterprise and therefore are neither efficient nor conducive to increasing strong economic growth.

Governments everywhere try to encourage people to reinvest their earnings into the economy. A progressive policy with respect to entrepreneurship sets tax rates on invested capital at a more favorable rate (Capital gains tax) than income from PAYE employment, interest, dividends and other sources.

The simplest systems are the best systems. The benefit of having a low flat tax rate that everyone pays would eliminate the tax arbitrage that plagues several developed economies like Ireland.

A flat tax is the best way to encourage people, especially the wealthy and higher paid people,

to be direct about how they receive their income. It also speeds the effect of market forces for a more rapid elimination of wasteful use of resources.

and investment and secondly to reduce individual income tax rates. High individual income tax rates result in higher costs of doing business for corporations.

and results in a dying economy. 67. A flat tax on all types of income at 15-20%would be a fantastic way of attracting corporations, immigrant entrepreneurs,

all capital gains should be taxed at 20%rather than 33%to incentivise investment in new enterprise. 69.

Any proceeds from these groups paying their share should then be directed firstly at reducing capital gains income tax (to encourage long-term thinking and investment

visit bit. ly/Irelandstartups. 2. Innovative Can-do Culture 2. 2 Education system 1. Develop a National Educational Strategy for Entrepreneurship covering all levels of the education system.

Establish an Entrepreneurship Education group to draft an Entrepreneurship Education Strategy that embeds teaching of entrepreneurship into primary

and skill development programmes. 2. Build ICT skills at secondary level as per the Oireachtas report on Information Communication Technology (ICT) Skills Demand in Ireland (2012) recommendations

and computer programming. 3. Introduce a National Register for volunteer entrepreneurs who would be willing to visit schools to engage with students at local level. 2. 3 Encouragement for Under-Represented Groups 4. As part of an entrepreneurship cultural awareness campaign,

or more entrepreneurs or entrepreneurial volunteers for meritorious service to Ireland. 2. 3. 1 Unemployed 6. Reduce the time required to be on the Live Register before being eligible for the Back to Work Enterprise allowance. 7

. Cut the waiting time for appointments for unemployed people seeking approval for access to the Back to Work Enterprise Allowance. 8. Improve the payments system for entrepreneurs'grants for unemployed people

Entrepreneurship should be recognised as a career option within any newly designed apprenticeship system. 13. An entrepreneurship internship programme should be established based on the EU funded Erasmus for Young Entrepreneurs programme.

As a pilot initiative, 50 of the larger more established startup and growth companies based in the Guinness Enterprise Centre could be engaged to take one‘youth unemployed'person each to undertake an internship. 14.

LEOS in conjunction with Microfinance Ireland should pilot a new programme for young people who set up their own business.

Microfinance Ireland should ring-fence money for a Micro Youth fund to facilitate youth-led ventures. 15.

A Competitive Feasibility Fund for Youth Entrepreneurs should be established by Enterprise Ireland. 2. 3. 5 Immigrants 16.

Enterprise Ireland should leverage their collaboration with the Higher education Authority (HEA) to develop a tailored enterprise programme that is targeted at immigrants who are postgraduates in Irish Higher education Insitutions (HEIS)

Local Enterprise Offices should work directly with immigrant organisations social groups and places of worship to promote the many services

and supports available to any person wishing to establish a business and to enable immigrant entrepreneurs to fully immerse their businesses in The irish market. 2. 3. 6 Seniors 18.

Exchequer funding for the successful EU supported Senior Enterprise initiative should be sustained when EU funding ceases.

and process for‘Office Hours to facilitate Entrepreneurship mentoring. Perhaps have this registry be compatible with other volunteer activity requests,

If paid mentoring services are delivered by State agencies, the Forum recommends cutting the charge as a specific measure to support unemployed people trying to start a business. 3. 4 Webinars 23.

4. 3 Accelerators 26. Successful entrepreneurs should consider establishing accelerator programmes in their local area, with a mind to investing or encouraging investment in the accelerated companies.

Vertical market accelerators are the avenue most recommended. 4. 4 Co-working spaces 27. A working group should be created to:

a. develop a co-working model that will work in Ireland, to include leveraging unused public buildings and NAMA buildings;

c. examine the North Tipperary Food Enterprise Centre (Rearcross) Ltd model and the Limerick model highlighted in chapter 4 for suitability for adoption in other areas;

Extend the successful IRC‘Enterprise Partnership Scheme 'which enables students to undertake their Phd research through an active engagement

Introduce a de minimus level of HEI/startup collaboration investment (up to €25k), below which IP contracting

Training on commercialisation or entrepreneurship should be provided to every Phd student and Post Doc via mandatory programmes held every semester by the universities. 40.

Every STEM student undergraduate and postgraduate) should receive a course on entrepreneurship or product commercialisation as part of their degree. 5. Access to Talent 5. 1 Share based remuneration to employees 41.

Accommodate Accelerator programmes by allowing up to 3 cofounders admission to come to Ireland for 1 year‘startup accelerator visa'to attend an Accelerator programme. 46.

Allow those that start companies from an Accelerator programme a process to apply for Visas to stay longer. 47.

Implement the‘trusted parties'work visa approval process as envisioned by the Department of Jobs Enterprise

Expand the tech visa to talent in other areas of unmet demand. 6. Access to Finance 6. 1 Encouraging investment in startups 51.

The angel community is regarded as the most effective stimulus for internal investment. Raise awareness of the HBAN network and help its expansion. 6. 1. 2 Employment and Investment Incentive (EIIS) 52.

Improve the EIIS: a. Enable medium-sized enterprises (50-250 employees) in the non-assisted areas43 to avail of the EIIS. b. The EIIS should be amended to increase the period of investment from three to five years.

-55-43 The EU Regional Aid Guidelines allow each Member State to provide enhanced rates of State Aid in the least economically developed areas of each country.

allow the full 41%relief be granted from the investment date. d. Eliminate the maximum €150k allowable qualifying investment in any one year under the EIIS.

a. Under the principle of‘de minimus'investment, it is possible for the existing Seed Capital Scheme plan to be modified to be easier to understand, up to limits of perhaps €250k.

Provide the Seed Capital Scheme in a version that provides‘capital matching'funds of up to 50%of the amount up to €250k, under the same general contribution rules (repayment of up to 6 years income tax.

where the sales proceeds from the sale of an asset are reinvested in the Seed Capital Scheme. 6. 1. 5 Rewarding continuous investment with deferred CGT 55.

or through investment into a company. Capital gains which are reinvested within a calendar year will not be recognised as gains until such time as they are reinvested not.

The Department of Jobs, Enterprise and Innovation should create an Entrepreneurship Policy Unit. 7. 2 Monitoring progress of entrepreneurship policy 61.

by the Department of Jobs, Enterprise and Innovation to support the tracking of performance of the entrepreneurship policy. 7. 3 Information Signposting 62.

A National Entrepreneurship Website for startups should be established which contains relevant upto-date information on services available

along with links to agencies relevant to establishing and growing a business. This initiative must also use social media channels. 63.

all capital gains should be taxed at 20%rather than 33%to incentivise investment in new enterprise. 69.

Any proceeds from these groups paying their share should then be directed firstly at reducing capital gains income tax (to encourage long-term thinking and investment),

Professor of Entrepreneurship, College of Business, Dublin Institute of technology Tom Hayes Micro Enterprise and Small Business enterprise Ireland Wendy Gray SME Policy, Department of Jobs, Enterprise

& Innovation Members of the Entrepreneurship Forum Acknowledgements Glossary of Terms BES: Business Expansion Scheme.

Department of Jobs, Enterprise & Innovation EI: Enterprise Ireland EIIS: Employment and Investment Incentive scheme EO:

Entrepreneurs Organisation GNP: Gross National Profit HBAN: Halo Business Angel Network, an angel finance group.

HEA: Higher education Authority HEI: Higher education institutions ICT: Information and Communications technology IIA: Irish Internet Association IP: Intellectual Property IRC:

Irish Research Council ISA: Irish Software Association ITLG: Irish Technology Leadership Group LDC: Local Development Companies LEO:

Local Enterprise Office NDRC: National Digital Research Centre OECD: Organisation for Economic Co-operation and Development PAYE:

Small & Medium Enterprise STEM: Science, Technology, Engineering and Maths VAT: Value Added Tax-59-Breznitz, D. 2012.

Ideas, structure, state action and economic growth: Rethinking The irish miracle. Review of International Political economy, 19 (1), 87-113.

Bridge, S. 2010. Rethinking Enterprise Policy. Palgrave Macmillan. Cooney, T. M, . & Flynn, A. 2008).

A mapping of ethnic entrepreneurship in Ireland. Reports, 1. Cooney, T.,Manning, J.,Arisha, A,

. & Smyth, P. 2011). Muslim Entrepreneurship in Ireland. Central Statistics Office: Migration and Diversity (2012) Live Register (2013) Danish Government Reports Denmark in the Global economy, Competitiveness Report (2010) Strategy for Denmark in the Global economy, Progress Innovation & Cohesion

(2006) Dublin Chamber of commerce, Budget 2014, Pre Budget Submission Department of Enterprise Trade and Employment (2008.

Inclusive Entrepreneurship in Ireland. Ernst and young (2013. Survey of Entrepreneur of the Year Award Winners. Dublin, Ireland.

European commission Reports Entrepreneurship in Higher education, especially within non Business studies (2008) Eurobarometer Survey on Entrepreneurship (2012) Entrepreneurship Action Plan (2012) Entrepreneurship Determinants:

Culture and Capabilities (2012) Ernst & young Report: Avoiding a Lost Generation (2013) Russia Feld, B. 2012.

Startup Communities: Building an Entrepreneurial Ecosystem in Your City. John Wiley & Sons. Forfás Reports (2007) Towards Developing an Entrepreneurship Policy for Ireland (2007) Mapping of Initiatives to Support Entrepreneurship in Ireland (2009) The role of Phds in the Smart Economy (2012) Evaluation

of Enterprise Supports for Startups and Entrepreneurs Forfás Presentation: Our Cities, Drivers of National Competitiveness Global Entrepreneurship Monitor.

Reports GEM Ireland National Report,(2012) GEM USA National Report (2012) Gibb, A.,Haskins, G,

. & Robertson, I. 2013). Leading the entrepreneurial university: Meeting the entrepreneurial development needs of higher education institutions.

Three decades of enterprise culture? Entrepreneurship, economic regeneration and public policy. Palgrave Macmillan Ltd..International Policy Reports for Economic growth Cooney, T. M. Kidney, E. 2009) Entrepreneurship and Innovation Policy in Ireland References-60-Joint Committee on Jobs, Enterprise

and Innovation (2012) A review of the Information Communication Technology (ICT) skills demand in Ireland.

Maguire, A. 2013) Presentation on‘Engagements with the Enterprise Sectors.''Melo, H. 2013. Startup Chile, The New Entrepreneurial Revolution Levy, C.,Lee, N,

. & Peate, A. 2011). Ready, Steady, Grow?:How the Government Can Support the Development of More High Growth Firms:

a Joint Cities 2020 and Knowledge Economy Programme Report. Work Foundation. Lundstrom, A. 2011) Entrepreneurship and SME Policies across Europe Organisation for Economic Co-Operation and Development Reports Entrepreneurship at a Glance (2013) Education at a Glance (2011) Entrepreneurship Review

of Denmark (2008) Measuring Entrepreneurship Indicators (2008) Stam, E.,Bosma, N.,van Witteloostuijn, A.,de Jong, J.,Bogaert, S.,Edwards, N,

. & Jaspers, F. 2012). Ambitious entrepreneurship: a review of the state of the art. Technical Notes#1 october 2012, Co-Working, Collaborative Working Spaces for Micropreneurs.

White, M. 2012) Promoting Women in Entrepreneurship in Ireland. World Economic Forum (2013) Entrepreneurial Ecosystems Around the Globe and Company Growth Dynamics.

Young, Lord (2013) Grow Your Business, A Guide to Micro Business. References continued-61-Published by the Entrepreneurship Forum c/o Department of Jobs, Enterprise and Innovation Kildare St. Dublin 2 Tel:

01 631 21 21

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