Synopsis: Entrepreneurship: Enterprise:

The present paper has as a starting point the close relationship existing between entrepreneurial activity, innovations and the development of Small and Medium Sized Enterprises (SMES.

1256 1099 1485 1723 Micro-enterprises 53.97%55.29%62.43%53.48%64.10%52.68%66.20%71.83%Small enterprises 32.35%30.83%27.73%33.45

%26.44%34.85%24.32%21.83%Medium enterprises 13.68%13.88%9. 84%13.07%9. 46%12.47%9. 48%6. 44%Structure of SMES 1378 1398 1306 1178 1256 1099 1485 1723 Luminiå£a Nicolescu, Ciprian Nicolescu

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Department of Enterprise, Trade & Employment Department of Enterprise, Trade & Employment 23 Kildare Street, Dublin 2, Ireland Telephone:+

We have identified ten key policy areas that underpin the Government†s approach to innovation in support of the knowledge economy and enterprise.

naiste and Minister for Enterprise, Minister for Science, Trade and Employment Technology and Innovation Dr Jimmy Devins Innovation in Ireland 2008 Innovation in Ireland 2008 Contents Introduction:

For enterprise, the aim is to create and apply technology innovation in products, services and business processes.

It requires a joint commitment by enterprise, society and Government to promote innovation in every sphere of business and public service.

Innovation and public policy While enterprises and individuals are the primary sources of innovation, public policy can establish the right framework conditions for innovation to flourish.

and Innovation at the Department of Enterprise, Trade and Employment and the Department of education and Science.

In this Innovation Policy Statement we identify ten key policy areas where innovation will be exploited in support of enterprise and the knowledge economy.

and equip them with generic and transferable professional skills that are relevant to a modern knowledge-based enterprise economy;

and Accommodate industrial placements to facilitate development of enterprise expertise. Commercialisation Increase outputs of economically relevant knowledge, know-how and patents from third-level institutions;

and quantity of research undertaken by enterprise †both directly and in cooperation with third-level institutions;

Leverage complementary strengths in institutions and enterprises in Ireland and Northern ireland through increased cross-border cooperation.

and equip them with generic and transferable professional skills that are relevant to a modern knowledge-based enterprise economy;

and Accommodate industrial placements to facilitate development of enterprise expertise. Commercialisation Increase outputs of economically relevant knowledge, know-how and patents from third-level institutions;

and quantity of research undertaken by enterprise †both directly and in cooperation with third-level institutions;

Leverage complementary strengths in institutions and enterprises in Ireland and Northern ireland through increased cross-border cooperation.

In this context, the enterprise development agencies are addressing two issues: The capacity of small and medium-sized enterprises to absorb

and apply research and new knowledge; and The increasing demand from enterprise for readily accessible applied research capabilities.

Higher Education†Industry linkages We are supporting a number of specific initiatives to develop these vital links between higher education and enterprise.

Examples are: The establishment of SFI Centres for Science, Engineering and Technology with the aim of significantly advancing knowledge and exploiting opportunities for discovery

negotiate with enterprises, and protect and manage intellectual property. The provision of Innovation Vouchers that enable businesses to collaborate with higher education †knowledge providers†to obtain an innovative solution to an enterprise need †these vouchers offer SMES the opportunity to forge new relationships

with higher education institutions and, ultimately, to develop new products and services. Innovation in Ireland Summary 2008 Building knowledge partnerships Our development agencies are attuned fully to keeping innovation at the core of their strategies and policies.

Enterprise Ireland †the agency charged with the development of indigenous industry †provides significant funding for R&d projects and investment in new R&d facilities through the R&d Advocate programme

It also works with companies to raise their awareness of the importance of R&d in the sustainability of the enterprise,

Enterprise Ireland is also very active in fostering collaboration between the academic and enterprise communities,

Enterprise Ireland coordinates Irish participation in the EU Framework Programmes and has appointed a national director to ensure a coherent and optimised approach.

and technology development (FP7) is relevant to Irish researchers and that it complements the existing R&d and innovation strategies for enterprise in Ireland.

Enterprise-led Competence Centres are being set up with highly qualified researchers to undertake strategic market-focused R&d for the benefit of industry;

A Research and development Fund is available to support R&d in enterprises. It offers up to 45 percent funding for R&d activities

Sean Haughey, TD, coordinates the lifelong learning agenda across both the Departments of Enterprise, Trade and Employment and Education and Science.

Skillnets, which is led an enterprise support body dedicated to the promotion and facilitation of learning as a key element in sustaining Ireland†s national competitiveness.

Skillnets supports over 150 networks of enterprises in Learning Networks, which are led and managed by the enterprises themselves.

Between them, these two programmes trained approximately 46,500 people in 2006. We have provided also funding for a strategic alliance between FÃ S and several training providers

The specific needs of managers in high-technology industries are being addressed by Enterprise Ireland through the Leadership 4 Growth programme,

and we will exploit opportunities for imaginative procurement practices that promote innovation in the enterprise sector

as the size, agility and adaptability of such enterprises often enables them to develop new and more cost-effective solutions.

both in the public sector itself and in the enterprise sector. e-Procurement e-Procurement, used throughout The irish public sector,

Enterprise Ireland, in cooperation with Intertradeireland and Invest Northern ireland, has developed Go-Source, an all-island public procurement directory and web site,

Our policy is geared towards stimulating and supporting networks of enterprises and other innovative forms of collaboration

Networks Significant benefits accrue to enterprises †and particularly SMES †that collaborate. They can share information on technology,

Enterprise Ireland is currently providing funding for such activities through its Industry-Led Networks Pilot programme

These are being developed with the support of Intertradeireland, Enterprise Ireland and IDA Ireland. Strategic cooperation between Enterprise Ireland, Invest Northern ireland

and Intertradeireland provides the critical mass to accelerate the development of all-island world-class companies.

Enterprise Ireland has ten regional offices throughout the country, and drives innovation in the regions by:

1919 Enterprise Ireland has invested heavily in business incubation activity, funding 25 incubation centres, 16 of which are based in Institutes of Technology.

Enterprise Ireland provides financial support for a number of Centres of Excellence in applied research in the institutes,

and it works closely with several County and City Enterprise Boards (CEBS) to raise awareness of IP issues among entrepreneurial start-up companies.

The Enterprise Ireland Techsearch initiative helps companies †and in particular SMES †to locate suitable partners locally or internationally,

Enterprise Ireland†s Intellectual Property Fund for the Higher education Sector and the Intellectual Property Assistance Scheme provide advice

with the aim of maximising the returns from existing enterprise services, and developing new service industries.

Our state agencies and County and City Enterprise Boards promote and support entrepreneurial and enterprise innovation activities, by providing direct funding, information, training, advice and facilities.

Start-up funding The state agencies provide practical supports and funding to high-potential, export-orientated start-up companies.

The Enterprise START Programme provides new start-ups with information and training delivered by experienced entrepreneurs;

the Enterprise Platform Programme provides entrepreneurs with a structured one-year training and support programme. Enterprise Ireland, for example, in its Leadership 4 Growth programme and its International Selling Programme, is working with companies to ensure they have world-class management teams with skills in the critical areas of sales, marketing

, technology and innovation. The recently launched Tech-Check scheme, run by the County and City Enterprise Boards,

offers ICT audits for growing businesses to ensure that they are optimally exploiting available information and communications technology.

Access to facilities The Community Enterprise Centres throughout the country provide a supportive environment for entrepreneurs at local level.

We are targeting the expansion businesses and encouraging innovation in existing enterprises. R&d tax credits, for example, are intended to encourage in-house R&d.

Dedicated teams in Enterprise Ireland are working with companies to help them achieve annual sales in excess of â 20 million

and to become sustainable global enterprises. Innovation in Ireland 2008 Innovation in Ireland 2008 27 Fostering entrepreneurship Our policies are geared towards stimulating latent entrepreneurial potential (particularly amongst women

The County and City Enterprise Boards encourage female entrepreneurship by promoting successful female entrepreneurs as role models

The County and City Enterprise Boards promote programmes such as the enterprise in second-level schools through Student Enterprise Awards.

and by providing free training to ethnic minority entrepreneurs at pre-enterprise, start-up and growth stages.

It is administered by Enterprise Ireland in collaboration with the NCPP and has three main strands: A public awareness campaign:

Promotion of innovation at enterprise level: This focuses on companies who are seeking to leverage workplace innovation to improve their competitiveness and productivity.

is not too burdensome on the enterprise sector, and the cost of compliance does not impact on competitiveness.

Our enterprise support agencies are geared now highly to stimulate and assist people and firms to produce new services and products and gain new markets.

and medium-sized enterprises (SMES) are critical parts of today†s innovation process, and should take a central place in government strategies to promote innovation.

OECD figures for eleven OECD countries suggest for example that â€oehigh-growth enterprises†account for between only 2 and 8 per cent of all enterprises with 10 or more employees,

while â€oegazelles†account for less than 1 per cent of such enterprises. 1 They nonetheless generate large impacts.

but the capacity of entrepreneurs to commercialise this type of invention through spin-off enterprises and knowledge transfers is critical.

and opened up innovation to new enterprises and SMES that participate in knowledge transfer networks with universities, large firms and other players.

Social entrepreneurs and social enterprises such as nonprofit organisations have stepped into this breach (OECD, 2003; Noya and Clarence, 2007.

Furthermore, whilst many of the goods and services offered through social enterprise and social innovation seek to fill gaps in purely public provision by welfare states,

Social enterprises may have greater problems accessing capital markets, for example, since they are understood not well by traditional banks.

Entrepreneurial activity may occur in start-up enterprises SMES, large firms or public sector organisations. What is important is that people are enterprising in the creation of value through innovation.

(which is generally but not always of small size) and the small and medium-sized enterprise.

In order to understand more fully how start-up enterprises and SMES contribute to innovation and identify the public policy implications,

The new start-up enterprise is one of the significant players in commercialising knowledge. This largely occurs as individuals leave universities

research organisations and large corporations to start enterprises based on knowledge they developed there in the form of â€oespin-off†companies,

and represent only a small proportion of new enterprise starts. Callan (2001) reports that academic spin-offs accounted for no more than 2%of new firm creation across eight OECD countries,

The relationship may involve not just the role of new start-ups in exploiting knowledge themselves but also the role of new enterprises and SMES as participants in knowledge exchange networks within innovation systems, stimulating knowledge transfers from universities and other

They require a different type of innovation support to high-growth-potential enterprises focused more on increasing their capacity to absorb knowledge from outside the firm.

National legal, financial and fiscal frameworks for social enterprises therefore need to be reviewed and adjusted and accompanied by capacity building, skills development and network creation for social entrepreneurs.

small enterprises tend to do less than large firms and there is a particular SME skills gap among older and routine workers.

are enterprises with average annualised growth in employees greater than 20%a year over a three year period and with ten or more employees at the beginning of the observation period. â€oegazellesâ€,

are enterprises which have been employers for a period of up to five years, with average annualised growth in employees greater than 20%a year over a three-year period and with ten or more employees at the beginning of the period. 2. See also NESTA (2009). 3. The OECD/Eurostat Entrepreneurship

Entrepreneurship, Small and Medium-Sized Enterprises and the Macroeconomy, Cambridge university Press, Cambridge. Drucker, P. 1985), Innovation and Entrepreneurship:

Challenges and Key Issues for Future Actionsâ€, Commission Staff Working Document (2007) 1059, European commission DG Enterprise and Industry, Brussels. Galbraith, J. 1972), The New

Entrepreneurship, Small and Medium-Sized Enterprises and the Macroeconomy, Cambridge university Press, Cambridge. Henrekson, M. and D. Johansson (2008), â€oegazelles as Job Creators †A Survey and Interpretation of the Evidenceâ€, IFN Working Paper 733, Research Institute of Industrial Economics, Stockholm.

Key Issues and Policy Considerations, OECD, Paris. OECD (2010a forthcoming), Leveraging Training and Skills Development in SMES, OECD, Paris. OECD (2010b forthcoming), High-Growth Enterprises:

•Industrial and enterprise policy which considers the strengths and weaknesses of open innovation approaches for key UK industries which are operating at different points in the innovation value chain;

Other enterprises choose to focus on drawing value from specific areas of the innovation value chain:

•Small and medium enterprises (SMES) †the fixed costs of managing open innovation processes fall disproportionately heavily on SMES;

but research also shows that open innovation can be a costly and difficult strategy for small enterprises to pursue effectively.

From its origins in large multinational product-focused companies, the concept of open innovation has also spread to small and medium enterprises (SMES.

For SMES practicing open innovation without large firm involvement, an open and collaborative approach to new solutions encourages networking and partnership between small enterprises,

A major resource investment of senior managers in an SME to deal negotiation could bring down a small enterprise

I. 2011) †Open Innovation Choices-What is British Enterprise doing? †Cambridge: UK IRC 15 Gassmann, O.,Enkel, E. and Chesbrough, H. 2010), †The future of open innovationâ€, R&d Management, Vol. 40

19 20 The announced sale of Autonomy to Hewlett-packard for $10bn in August 2011 has reignited the debate over the robustness of British enterprise.

In many cases these large enterprises may be able to yield greater returns from the knowledge embodied within the SME than the SME would by growing organically.

there are fundamental and systemic issues with how such markets for knowledge and knowledge enterprises work.

It is far from clear that trades of such enterprises reliably capture their true value †especially to national economies â€

and that some enterprises will sell out too cheaply when their real value could be realised through organic growth,

and nurturing successful markets for knowledge through open innovation is a particular issue for small and medium enterprises.

and leadership skills should be an urgent enterprise policy priority. 32 From this perspective it must also be an open innovation policy priority.

Finally, the attractiveness of the UK enterprise environment depends on infrastructures and the strength of networked institutions.

I. 2011) †Open Innovation Choices-What is British Enterprise doing? †Cambridge: UK IRC Dahlander, Linus,

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 1 EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS AND ENTREPRENEURSHIP 2 Table of contents Executive Summary 3 1 Background

and Context 20 2 Enterprise Ireland †High Potential Start up Supports 25 3 CORD Programme 47 4 Enterprisestart 1 Programme 54

5 Enterprisestart2 Programme 60 6 Enterprise Ireland Propel Programme 66 7 Enterprise Ireland Ideagen Programme 81 8 Enterprise Ireland Seed & Venture capital

Fund Programme 91 9 City & County Enterprise Boards †Start Your Own Business Supports 2004-2010 117 Appendix I:

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 3 Executive Summary Background Programme of Evaluations for Enterprise Supports The Department of Jobs, Enterprise and Innovation (DJEI

s undertake an evaluation of the comprehensive suite of enterprise support programmes provided by the enterprise development agencies1.

s in 20112 to ensure consistency of approach that facilitates comparison (where appropriate) and that is cognisant of the common challenges facing enterprise evaluation.

and iii. alignment with national enterprise policy. An Evaluations Steering Group has been chaired set up by Forfã¡

s. It includes representation from the Department of Jobs, Enterprise and Innovation, the Department of Public Expenditure and Reform, IDA Ireland, Enterprise Ireland, Science Foundation Ireland,

it is important to place these in the context of enterprise policy. The following sections set out the rationale for government intervention for start ups informed by international review.

We then set out an overview of Ireland†s enterprise policy and start up activity during the period under evaluation (2004-2010). 1 Including those provided by IDA, Enterprise Ireland,

the County Enterprise Boards and those programmes delivered by SFI that have a'touch point'with enterprise 2 Informed by research conducted by Indecon Consultants 4 Evaluation of Supports for Entrepreneurship

and Start ups Rationale for Government Intervention Entrepreneurship is recognised internationally as a key element of enterprise policy and contributor to economic performance.

There is a positive and robust correlation between entrepreneurship and economic performance in terms of growth, firm survival, innovation, employment creation, technological change, productivity increases and exports3.

and in the second to a desire to proactively develop the enterprise base and to stimulate sustainable economic growth and job creation.

The different market failures and enterprise objectives demand different policy responses. For example, information deficits may be addressed by interventions that provide information to entrepreneurs.

Ireland†s Enterprise Policy Context and Challenges Relevant strategies over the period of review reflect the importance of supporting start-up companies as a means to stimulate economic growth and employment.

and the National Recovery Plan as well as Ahead of the Curve, 2004 (Enterprise Strategy Group) and the Report of the Innovation Task force, 2010.

s undertook a review of Ireland†s prevailing enterprise policies and published Making it Happen4 in 2010.

and set out the critical factors that underpin a competitive and sustainable enterprise base. These include Innovation, Productivity, Cost Competitiveness and a Strong Enterprise Mix.

These factors are relevant for all firms and particularly so for start-up activity given that entrepreneurship is a key driver of innovation

and that start up companies tend to increase the level of productivity in the enterprise base

which new sectors or sub sectors of existing industries take root in Ireland helping to deliver a strong enterprise mix. 3 Action Plan †the European Agenda for Entrepreneurship,

Understanding Economic growth, OECD,(2005) 4 Making it Happen †Growing Enterprise for Ireland, Forfã¡s, 2010 FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 5 The Action Plan for Jobs published in 2012 places an increased emphasis on supporting indigenous start-ups.

Entrepreneurship Activity in Ireland during the Period under Evaluation Since the onset of the recession that occurred midway through the evaluation period,

Scope of Evaluations This suite of evaluations covers programmes offered by Enterprise Ireland and by the City and County Enterprise Boards (CEBS) 7 to entrepreneurs and start-up companies.

Enterprise Ireland supports companies that employ greater than 10 people and that target export markets and/or demonstrate export potential.

The County Enterprise Boards cater primarily to micro-firms (those employing less than 10 people. Enterprise Ireland Programmes:

High Potential Start-ups Package Feeder Programmes: CORD Enterprise START 1 Enterprise START 2 Ideagen Propel Seed

& Venture capital Programme-in terms of its contribution toward improving the eco system for start ups County and Enterprise Board Programmes:

Encompassing financial and soft supports, including Start Your Own Business courses. 7 This evaluation was completed substantially prior to the publication of the Action Plan for Jobs 2012

which envisages the dissolution of the existing CEB offices and the creation of a new network of Local Enterprise Offices.

The net cost of the Seed & VC programme is calculated from Enterprise Ireland Cash Flow Statement year ended 31 december 2010-investing activities were â 15. 61m

HPSU, â 21.02,42%Seed & VC, â 8. 34,17%SYOB, â 17.04,34%CORD, â 2. 40,5%Propel, â 0. 34,1%Enterprise Start

0%Enterprise Start 2, â 0. 21,1%Ideagen, â 0. 14,0%FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 9 Individual

Financial and nonfinancial supports provided by Enterprise Ireland encompass those areas critical to business success,

Enterprise Ireland†s funding contribution is primarily in the form of equity toward the implementation of a business plan9.

primarily preference shares 10 All Irish owned firms surveyed annually through the ABSEI 11 Enterprise Ireland firms started between 2000 and 2006 with 10 employees

Enterprise merly funded has been man or 200612. Th haser of dom d year as a H terprise Irela gh?

-so HPSU with a and†s target due regard e likely to co mediate term Enterprise Ir overseas as spin outs e number of im is to broa e not designe one initiative

whi ise Ireland. he associated rcialisation of nal Technolog D, Propel, Ide rtment of Edu h Enterprise Ire ce urced knock-for 2012 to

seven are HPSU/pre-HSPU clients of Enterprise Ireland. Overall, however, there is evidence of some duplication of activities across these HPSU feeder programmes in terms of programme content

Enterprise Ireland replaced the Enterprise Platform Programme (EPP) and Propel with a new programme New Frontiers in February 2012,

and 141 in Enterprisestart2 for the period 2009 to 2011 FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 13 Seed and Venture capital Programme †Findings The evaluation focused on the period 2000-2010

which covers two schemes of the Enterprise Ireland Seed & Venture capital Programme17. This evaluation is not an analysis of the performance of the VC funds themselves.

The Enterprise Ireland Seed & Venture capital Programme was conceived initially in the mid 1990s at a time when Ireland†s VC industry was in the embryonic stages of development.

which the Enterprise Ireland Seed & Venture capital Programme is delivering on its stated objective which is to:

805 actual investments from Enterprise Ireland partner funds were made by the end of 2010. These were made in 186 companies

Private funds invest in the Enterprise Ireland Partner Funds: Each â 1 committed by the State to the Enterprise Ireland partner funds attracted â 3 of private investment20.

This compares 17 Scheme 2 from 2000 to 2006 and Scheme 3 from 2007 to 2012 18 The same rationale was set out for Finland†s involvement in VC funds:

Department 19 Of this, approximately â 425.3 million (44 per cent) has been invested by the Enterprise Ireland Partner Funds 20 Leveraging effect †Scheme 2 was â 1:

It is important that Enterprise Ireland continually assesses the availability of different and appropriate sources of funding for its clients

In terms of alignment with enterprise needs, there may be scope for greater investment in the areas of clean technologies and technology based food products

NPRF) FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 15 Work with the private sector to ensure the availability of funding from other sources for key sectors that are not appropriate for venture capital investment.

The Department of Jobs, Enterprise and Innovation should be cognisant of the financial return to the State through EI-Partner funds28.

Start Your Own Business Supports (SYOB) †Findings The County Enterprise Board network consists of 35 companies limited by guarantee.

The CEBS provide direct financial and soft supports to new and existing enterprises. They are also responsible for increasing awareness

and supporting local developments that contribute to enterprise. Total exchequer funding to the CEBS is circa â 33.5 million (2009) to support their wide ranging remit.

Enterprise and Innovation should be cognisant of the financial return to the State through EI-Partner funds 29 This includes circa â 6 million of indirect costs.

which envisages the dissolution of the existing CEB offices and the creation of a new network of Local Enterprise Offices.

FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 17 Overarching Recommendations Alignment with Government Policy †Findings Generally,

Nonetheless, it is notable that Government policy in Ireland is general enterprise policy. There is no policy set out that is specific to entrepreneurship31.

Enterprise Ireland has developed its own strategies, as have the CEBS, but the lack of clear direction from Government makes it difficult to assess

This is likely to be even more pertinent in the context of proposed changes to the agencies/structures to support micro enterprises as set out in the Action Plan for Jobs, 201233.

Since 2008, that situation has reversed with significant difficulties for enterprises relating to access to finance following the onset of the banking crisis

The desire to proactively develop the enterprise base to stimulate sustainable economic growth and job creation has remained also constant,

and enterprise supports over the entire period. In overall terms, the analysis of the enterprise agency supports for start-ups and entrepreneurship34 shows that these programmes are addressing the market failures common to entrepreneurship.

The 31 While policies such as the Smart Economy document National Recovery Plan and successive strategies of the Department of Jobs Enterprise and Innovation recognise the importance of supporting start-up activity,

these do not set out a clear vision or objectives for what Ireland wants to achieve in this area 32 Entrepreneurship policy in the Nordic Countries †perspectives of development since 2003, Nordic Innovation Centre 2008 33 Action Plan for Jobs, 2012.

Action Number 2. 2 refers 34 Including start up supports provided by Enterprise Ireland and the City and County Enterprise Boards 18 fact is that the emphasis on specific market failures change in differing economic circumstances â€

which also affects the nature of policy response and/or intervention required. Recommendation The rationale for State intervention should be reviewed continually to ensure that the most appropriate supports are being provided to address the market failures that pertain at any particular point in time.

Recommendation Introduce a system of ex-ante evaluation across the enterprise agencies, informed by the programme logic model set out in the Forfã¡

The proposed new network of Local Enterprise Offices (LEOS) in each local authority aims to provide a †one-stop-shop†micro enterprise support structure

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 19 Recommendation Develop a national information portal to provide easily accessible and relevant information for individuals wishing to start a new business, building

and Enterprise Platform Programme are welcomed. The suite of supports offered span a broad range of potential entrepreneurs

In line with enterprise policy, financial supports are targeted toward manufacturing and internationally trading services companies thereby minimising the potential for displacement.

s 20 1 Background and Context 1. 1 International Review †Entrepreneurship and Economic Performance Entrepreneurship is recognised internationally as a key element of enterprise policy and contributor to economic performance.

In the second instance the rationale for government intervention relates to a desire to proactively develop the enterprise base

The different market failures and enterprise objectives demand different policy responses. For example, information deficits may be addressed by interventions that provide information to entrepreneurs.

London FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 21 It is also true to say that the nature

In this context start-up enterprises can deliver economic benefits by harnessing underutilised labour resources to generate additional wages, profits and tax revenues.

Thus, the turnover and employment levels of new firms, export and productivity performance together with their longevity are indicators of a successful entrepreneurial performance. 1. 2 Ireland†s Enterprise Policy Context

s undertook a review of Ireland†s prevailing enterprise policies and published Making it Happen39 in 2010.

and set out the critical factors that underpin a competitive and sustainable enterprise base. These are relevant to all firms in the economy,

Programmes provided by the enterprise agencies should seek to address these challenges40. Productivity: Start-up companies tend to increase the level of productivity in the enterprise base.

As stated above, there is a positive correlation between the entry rate in a given 39 Making it Happen †Growing Enterprise for Ireland, Forfã¡

s, 2010 40 The RD&I suite of programmes include a number of initiatives that focus on commercialisation

Strong Enterprise Mix: Government intervention in entrepreneurship can play a key role in creating a strong enterprise mix.

Start-ups are one of the means by which new sectors or sub sectors of existing industries take root in Ireland.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 23 Table 1. 1: New Firm & Early Stage Entrepreneurs in Ireland 2004-2011 New Firm Entrepreneurs Early Stage Entrepreneurs 2011 3. 1%7. 3%2010

Head of Ad Adult Popula dult Populat ation 2004 & tion 2004 & & 2010 2010 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 25

2 Enterprise Ireland †High Potential Start up Supports Programme Logic Model Objectives Increase the number of high potential, innovation-led start-up companies

in Ireland with the capacity to sell innovative products and services in world markets Foster job creation across the regions of Ireland Promote the growth of new sectors with sustainable competitive advantage Inputs Enterprise

Ireland contribution †predominantly in the form of equity funding (standard Enterprise Ireland supports may also run concurrently) Private

Activities Based on a robust approval process, Enterprise Ireland provides financial (equity) and nonfinancial support to HPSU with a business strategy that encompasses all elements required for business success Enterprise Ireland also assesses future HPSUS who are participating on other programmes,

or in receipt of other Enterprise Ireland supports (e g. Enterprisestart, CORD) Outcomes & Impacts Increased number of high potential, innovation-led companies with the capacity to sell innovative products and services in world markets Increased exports

Increased turnover Increased employment High survival rates 26 2. 1 Evaluation Aim The aim of the evaluation is to assess the appropriateness

efficiency and effectiveness of the Enterprise Ireland High Potential Start up supports. This is an interim evaluation focusing in the period 2004-2006.2.2 Programme Background,

provided by the HPSU and Scaling Division in Enterprise Ireland. The core role of the team involves assessing enquiries,

The speed of progress from enquiry to Enterprise Ireland HPSU depends on the experience of the founders and the quality of the idea.

Enterprise Ireland runs and supports a range of programmes that help the entrepreneur build the project,

Precursor agencies to Enterprise Ireland typically invested in Start-up companies in the form of grant aid

Enterprise Ireland†s funding contribution is in the form of equity towards the implementation of a business plan.

The size of Enterprise Ireland†s contribution is based on the company†s growth potential the achievement of milestones and value for money criteria.

Target Population Enterprise Ireland identifies three general types of HPSU clients, though individual targets may not be definitively set with this in mind:

so for up to 6 years after hiring its first employee FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 27 Potential Scaling companies;

Enterprise Ireland has begun also supporting entrepreneurs relocating from overseas that now average 10 per year. 2. 3 Programme Rationale Funding HPSUS is a fundamental part of enterprise policy

(and forms the core part of the Enterprise Ireland Policy framework set out by DETE in 1998).

This echoes enterprise policy in most innovation-driven economies, particularly the US, Australia, Denmark, Finland, The netherlands and Sweden, where there is a focus on supporting high potential start-up companies. 2. 4 Evaluation

commentary is made on activity in the 2006-10 period, particularly regarding issues such as continuing take-up and a changing enterprise policy context.

Nonetheless, it is possible to compare the performance of HPSU supported firms with the wider population of The irish owned firm population supported by Enterprise Ireland

comparator groups from the wider population of Enterprise Ireland supported firms have been constructed, controlling for age of firm, numbers employed, turnover and sector44:

For employment we use the population of Enterprise Ireland start-ups from 2000-2006 with a minimum of ten employees for comparison45;

A previous review of HPSU supports was carried out by Enterprise Ireland in 2010. This review covered the period 1989-2008

The Enterprise Strategy Report Group which reported in 2004 cited â€oeinternationally-traded services sector†as â€oeforming an increasingly important component of trade in the economies of the more developed countries,

EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 29 with the potential and ambition to grow innovative,

and jobs in the domestic market Enterprise Ireland†s corporate strategies build on this by highlighting export growth and service growth as drivers for enterprise development.

Enterprise Ireland†s corporate strategy (2008-2010) points to â€oethe flow of innovative start-ups into The irish economy which is critical for future growthâ€.

Towards Developing an Entrepreneurship Policy for Ireland (2007) stresses that enterprise supports should â€oeoptimise the number of start-up businesses

Costs to Enterprise Ireland in providing support services such as advice for clients on aspects of their business

2006 Direct Costs (â) Indirect Cost (â) FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 31 Table 2. 2:

28,001, 699 The HPSU team works closely with the Investment Services Division of Enterprise Ireland to identify suitable third party funding for start-up companies.

Enterprise Ireland also funds the activities of the Halo Business Angel Network, administered through the four regional BICS.

outputs and activities involve the provision/facilitation of HPSU activities itemised in Table 2. 3. Enterprise Ireland offers a wide range of services to HPSUS eligible to be considered for supports

Financial and nonfinancial supports are provided to companies with a business strategy that encompasses all elements required for business success. FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS

Relevant metrics are supplied to the Enterprise Ireland Board each month (spinouts from research are captured also. Getting funded is a key milestone a start-up faces

and Enterprise Ireland plays an important role in helping companies to reach this goal. Once this has been achieved, HPSU

and the Enterprise Ireland overseas team works closely with companies to achieve another major milestone, getting to â 1m in sales. 2. 8 Impacts & Outcomes Turnover Total turnover for all

S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 35 Table 2. 5: Total Turnover (2004 HPSUS)( 000†s) 2004 2005 2006 2007 2008 2009 2010 2004-2010 Total Sales 2004 Arrivals 30,030

cent 00†s) FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 39 Chart 2. 9:

terms during the period of the recession than the comparator group (Enterprise Ireland firms started between 2000 and 2006 with 10 employees or over) 47.

f the 2004-20 pulation 2000 s Enterprise returns (or trix by year 4 2005 1 0 1 04-2010) 006 HPSUS w

. The FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 43 Chart 2. 14:

cies, FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 45 HPSU, leading to a sharp decline in subsequent years,

Synergies/Overlap The HPSU support is an holistic approach, drawing on appropriate Enterprise Ireland programmes to address client requirements.

Enterprise Ireland has now set targets of 100 HPSUS per year and has been active in securing HPSUS from overseas,

Enterprise Ireland It is recognised that it will be important that any increase in numbers generated is not at the expense of quality of HPSU.

The recommendation (ref 2. 6) set out in the Action Plan for Jobs requires that Enterprise Ireland to deliver 95 new HPSUS for 2012.

Enterprise Ireland is charged also with increasing the number of investments in Inward Entrepreneurial Start up Projects by 50 per cent. 54 The RD&I suite of programmes include a number of initiatives that focus on commercialisation of HEI research

The National Technology Transfer system, the Business Advocates Programme and the Patent Fund FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 47 3 CORD Programme

to entrepreneurs on the Enterprise Platform Programme (EPP) Outputs Continued Participation on the Enterprise Platform Programme (EPP) Activities The CORD programme is grant-based only Outcomes

efficiency and effectiveness of the Enterprise Ireland CORD grant supports. 3. 2 Programme Background, Objectives & Target Population Launched in 2005,

the CORD Grant programme provided by Enterprise Ireland is a constituent part of the Enterprise Platform Programme (EPP),

Participants are eligible to apply to Enterprise Ireland for a salary grant of 50 per cent of their previous year†s salary

while they are on the Enterprise Platform Programme. The broad objective of CORD is to discover

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 49 3. 3 Programme Rationale EPP/CORD participants are a source of potential High Potential Start-ups

to Enterprise Ireland, and the programme is a way of discovering and developing new entrepreneurs and ideas.

which target high growth entrepreneurs first emanated from the then Department of Trade Enterprise and Employment†s Strategy of 2003 to 2005.

The CORD enterprise support has a particular focus on finding and assisting early stage high potential entrepreneurs with their business ideas.

Enterprise Ireland†s Strategy 2008-2010 Transforming Irish Industry highlights the importance of â€oedeveloping the pipeline of new ideas, leaders and innovative products and servicesâ€.

Enterprise Ireland only funds the salary stipend of the entrepreneurs with A high Potential Start-up (HPSU) proposition, that have left employment (have been made redundant

and are participating full time on the Enterprise Platform Programme. 50 Between the COR approva Since its 2008,

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 51 Table 3. 1: Number of CORD Recipients, 2005-2010 2005 71 2006 88 2007 114 2008 108 2009 75 2010 71 3. 6 Outputs

so the only immediate output of CORD Grant is continued participation on the Enterprise Platform Programme. 3. 7 Impacts

92 20.6 A survey was undertaken on behalf of Enterprise Ireland, gauging the opinion of EPP participants in late 2009 (EPP is CORD€ s parent programme) across all years of the programme†s existence.

A total of 94 participants responded to the Enterprise Ireland survey. Of these, 33 (35.1 per cent) indicated that they were a HPSU client.

In the case of the CORD, a high proportion of surveyed HPSU/CORD participants ascribe the CORD support as being instrumental in their becoming an Enterprise Ireland HPSU client. 12 16 6 0 2 4

6 8 10 12 14 16 18 Yes No Don't Know FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 53 Efficiency Based on client surveys

35.1 per cent of CORD recipients that responded to an Enterprise Ireland survey in 2009 had become HPSUS.

this represents a more risk-averse approach by Enterprise Ireland, by concentrating more on those companies with clearer HPSU potential.

During the process of this evaluation, full responsibility for the EPP was assigned to Enterprise Ireland.

In February 2012 Enterprise Ireland launched a new programme (New Frontiers Entrepreneurship Development Programme -which includes the replacement of Propel)

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 55 4. 1 Evaluation Aim The aim of the evaluation is to assess the appropriateness

efficiency and effectiveness of the Enterprise Ireland Enterprisestart 1 programme. 4. 2 Programme Background, Objectives & Target Population Introduced in January 2009,

The programme is usually run 3 times a year, over 6 weekends (Friday evening and Saturday morning) by third party consultants, taking place either in Enterprise Ireland regional centres or nearby hotels.

for Enterprise Ireland it is to drive the number of HPSUS in the context of the increase in the Enterprise Ireland target from 80 to 100 per year;

in that any potential foregone time/expenditure by Enterprise Ireland on all or some of those ideas would have resulted in inefficiency and deadweight loss.

Added to this was Enterprise Ireland†s revised strategy between 2008 and 2010, under which innovation-led regional

The Enterprisestart programme aims to increase awareness of and participation in Enterprise Ireland programmes in all regions, by making information and training more easily accessible.

The Enterprise Ireland regional offices are expected to hold two sessions each per year. 4. 6 Inputs Total costs for the programme for the two years 2009-2010 were â 344,800 as set out in Table

Total Costs â 185,400 â 159,400 58 Towards Developing an Entrepreneurship Policy for Ireland, 2007 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 57

Average salary of all enterprise Ireland employees involved was calculated and then weighted depending on the estimated time spent delivering the support.

Enterprisestart Direct and Indirect Costs 2009 & 2010 4. 7 Outputs & Activities Eighteen events are held per year in Enterprise Ireland†s regional offices.

The events are staged by Excel Partners, in conjunction with Enterprise Ireland. The programme executives pre-vet the participants for each session †the aim is to restrict the number per session to 15.

1 participant transferred to the County Enterprise Boards (CEBS; and 14 are still in progress. In 2010, out of 241 participants;

16 are HPSUS/Pre HPSU clients of Enterprise-Ireland; 12 transferred to the CEBS; 140,000 114,000 45,500 45,500 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2009 2010 Estimated Indirect cost

25 are HPSUS/Pre HPSU clients of Enterprise-Ireland 4 transferred to the CEBS 55 are still developing their business plans 46 have decided not to pursue their business plan to date

& Conclusions Appropriateness It is clear that the function of the Enterprise START programme is aligned well with the prevailing policy objectives of stimulating regional entrepreneurship, in pursuit of future HPSU development and export performance.

as opposed to individual programmes FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 59 each focusing on different-but not necessarily highly differentiated-cohorts of entrepreneurs.

export intensive and innovation-led enterprises, from all regions through: Refining and integrating new business ideas into HPSU-worthy enterprises;

Enabling entrepreneurs to best judge the viability of their ideas; and To filter out non-HPSU worthy value propositions.

Inputs Financial commitment of â 2m in annual funding from Enterprise Ireland to the Business Innovation Centres (BICS), Projects are referred to the BICS by Regional Development Executives and Development Advisers

Activities (Enterprise Ireland) Project referral, Ongoing Participant assessment with respect to HPSU. Outcomes & Impacts HPSU Transfer, CEB Transfer, Discontinuation of incomplete/non-HPSU ideas.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 61 5. 1 Evaluation Aim The aim of the evaluation is to assess the appropriateness

efficiency and effectiveness of the Enterprise Ireland Enterprisestart 2 programme. 5. 2 Programme Background, Objectives & Target Population Commencing in December 2008,

in that any potential foregone time/expenditure by Enterprise Ireland on all or some of those ideas would have resulted in inefficiency and deadweight loss.

The Enterprisestart programme aims to increase awareness of and participation in Enterprise Ireland programmes in all regions, by making information and training more easily accessible.

By learning this early on, it saves both the promoter and Enterprise Ireland time and money,

developing a sustainable enterprise base59. Added to this was Enterprise Ireland†s revised strategy between 2008 and 2010, under

which innovation-led regional and rural based start-ups would be supported through encouraging and delivering entrepreneurship from/in all regions.

2007 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 63 team spent conducting the support.

South East BIC Pe rce nt ag e FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 65 contribution of Enterprisestart2 to the HPSU cohort,

such as in Enterprise Ireland resources which, in the absence of the programme, would have been devoted to companies with incomplete

Enterprise Ireland had made clear the advantage of delivering ES2 through three other BICS is that it would relieve the Dublin BIC of a bottleneck of participants;

it is however something that merits further monitoring as the programmes continues. 66 6 Enterprise Ireland Propel Programme Programme Logic Model Objectives The strategic objective of the Enterprise Ireland Propel programme is to improve the overall economy of Ireland by:

Inputs Enterprise Ireland contribution: Organisation and hosting costs; Promotional activities; and Consultant fees (PA. Outputs Number of participants, Number of investor ready business plans,(Phase II as proxy) Number of HPSUS.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 67 6. 1 Evaluation Aim The aim of the evaluation is to assess the appropriateness,

efficiency and effectiveness of the Enterprise Ireland Propel programme. This is an interim evaluation, focusing on Propel One

and other enterprise supports such as the Enterprise Platform Programme (EPP) run by the Institutes of Technology.

and provides detail on the national enterprise policy context. It also considers Propel in terms of complementarity and/or overlap with other enterprise interventions.

The Propel programme runs until the end of 2011. Enterprise Ireland is launching a new programme in 2012

which combines the Enterprise Platform and CORD Programmes. This programme will also address the objectives of the Propel programme. 6. 2 Background,

Objectives and Target Beneficiaries Propel provides training and business development supports to start ups and entrepreneurs with ideas for export based businesses

which have the potential to become Enterprise Ireland High Potential Start up clients. The strategic objective of Propel is to improve the overall economy of Ireland by:

a cross border collaborative programme run by Enterprise Ireland and Invest Northern ireland in 2007 and 2008.

This programme is in line with national enterprise policy61 as it has evolved over the past decade.

Enterprise Ireland†s corporate strategy62 states that â€oethe development of innovative products and services by start-up companies with a high potential to grow,

and accelerating the development of technology led start-up companies with scaling potential. 61 Key enterprise related policy documents over this time include the Enterprise Strategy Group Report,

and the Strategy for Science, Technology and Innovation 2006-2013,2006 62 Enterprise Ireland, 2007, Transforming Irish Industry,

Enterprise Ireland Strategy 2008-1010 FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 69 Making it Happen †Growing Enterprise for Ireland, Forfã¡

The selection process is done jointly by PA Consulting (the contracted providers) and Enterprise Ireland. Propel Recruitment and Selection Criteria Senior manager with 5 years plus experience

The selection panel is made up of strategic business development experts from Enterprise Ireland and PA Consulting.

and this is demonstrated to some extent by the high proportion of participants that access these supports (Chart 6. 1). The programme is managed by a team of people from Enterprise Ireland and PA Consulting,

For Propel Two it was decided to focus on the Lifesciences and the ICT sector, based on the existing enterprise base, the profile of programme candidates and the experiences from the pilot programme.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 73 Chart 6. 2: Extent to which Propel benefitted the development of your business-Survey Respondents Propel One & Two:

a start-up enterprise could move from the thematic area of start-up to business development after a number of years

Overlap/Duplication There is some overlap between Propel and other enterprise support programmes. In particular, Enterprise Start 2 and the EPP in terms of aspects of the training delivered

and access to supports such as incubation space. However, the Propel programme is more intensive than Enterprise Start

and involves significantly more one to one and tailored training specifically to high technology start up needs.

Enterprise Ireland is launching a new programme in 2012 which combines the EPP and CORD and

Evaluation of the Propel Programme, February 2011 †direct costs only FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 79 Table 6. 2:

Grant Connections, Evaluation of the Propel Programme, February 2011, Enterprise Ireland data and Forfã¡s analysis Effectiveness Effectiveness covers the extent to

and a number of other enterprise development supports and it is likely that there is some substitution effect across these programmes.

In addition, they gain a greater knowledge and understanding of supports for enterprise development and commercialisation of research.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 81 7 Enterprise Ireland Ideagen Programme Programme Logic Model Objectives Bring entrepreneurs,

and Provide information to entrepreneurs and academics on sectoral trends, research activities, enterprise and research supports, commercialisation strategies and market developments.

Inputs Enterprise Ireland contribution: Organisation and hosting costs; Promotional activities; Consultant fees. Partner HEI contribution.

Outputs Number of participants †industry and academic, Sectors and technology areas covered †aligned to enterprise and research base,

Information sessions †enterprise and research supports etc. Outcomes & Impacts Increased awareness among participants of:

Increased take-up of supports to promote enterprise development. 82 7. 1 Evaluation Aim The aim of the evaluation is to assess the appropriateness, efficiency and effectiveness of the Enterprise Ireland Ideagen Programme.

and Provide information to entrepreneurs and academics on sectoral trends, research activities, enterprise and research supports, commercialisation strategies and market developments.

and Enterprise Ireland worked with a number of stakeholders and partners in delivering this programme including the South East Business Innovation Centre,

local Chambers of Commerce, the City and County Enterprise Boards in the region, South East Spirit of Enterprise, Waterford IT, Carlow IT and Tipperary IT.

and enterprise base in the region as well as emerging business opportunity areas, such as converging technologies and consumer foods.

As a result, significant numbers of people were engaging with Enterprise Ireland and other enterprise development bodies to seek support and guidance on developing their business propositions.

In a number of cases, the business propositions being put forward by entrepreneurs were not sufficiently innovative to meet the qualifying criteria for High Potential Start up supports.

At the FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 83 same time

As such collaboration with academic and/or enterprise partners is often essential to realise the full potential of innovative business ideas in terms of economic growth and job creation.

Journal of Enterprising Culture, 8, 103-119.84 The programme fits with Enterprise Ireland†s stated corporate strategy that â€oethe development of innovative products

Supporting these companies is a key objective for Enterprise Ireland. †Making it Happen †Growing Enterprise for Ireland, Forfã¡

and complementary critical success factors to ensure a sustainable and competitive enterprise base in Ireland.

and a Strong Enterprise Mix. Innovation is viewed as an essential element for driving economic growth and the report emphasises the strong role of entrepreneurship and the commercialisation of academic R&d in increasing innovation.

and stresses the importance of â€oeprotecting investment †in supports for enterprise and innovation for the development of the smart economy†and on the key role of â€oegrowing high potential indigenous enterprises to support economic

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 85 Chart 7. 1: Direct and Indirect Costs 7. 6 Activities & Outputs Enterprise Ireland arranges

and promotes a series of sectoral based networking events that involve: Presentations by industry experts on commercialisation strategies, growth opportunities etc;

and Information sessions †enterprise and research supports etc. Each Ideagen event is a three hour session focusing on a specific sector

Each event begins with a presentation from the industry expert from Enterprise Ireland who highlights the trends

and high-growth opportunities within the sector and gives detail of relevant research and enterprise supports.

Enterprise Ireland designs the format and content for each of the Ideagen events. They arrange the speakers and facilitators for each of the events and work with the Higher education Institutes

business organisations and enterprise support agencies in the regions to develop and promote the specific events.

In this context, Enterprise Ireland manages a Linkedin and Facebook page for Ideagen to facilitate ongoing networking

fourt st three qua variation acro of the back academia and ps such as ch gen Particip egional Cove ld during the, Enterprise the events a sses with int ial;

and network and enterprise d d networking most about de: ed all three of hirteen resear SE SUPPORT hich allowed standing of h t this worke n particular trepreneurs.

However, Enterprise Ireland actively tracks the progress of the participants on the programme particularly in terms of business plan development

and progression to become HPSU/Pre HPSU clients of Enterprise Ireland as a result of Ideagen. Data on the progression of participants from the pilot phase to become HPSU/Pre-HPSU is not available.

7 are HPSU/Pre HPSU clients of Enterprise Ireland; and A high proportion of other attendees are in the process of developing business plans

and are still in contact with their Regional Executives in Enterprise Ireland. 7. 8 Findings

and looking to secure support and advice from the enterprise agencies. Although the economic circumstances were

and its objectives do align with national enterprise policy and there remains an ongoing rationale for the Ideagen programme.

and it can act as a feeder for programmes and supports such as Enterprise Start or the HPSU supports.

A key element of Ideagen is the provision of information on relevant enterprise and research supports such as Propel

For example, a start-up enterprise could FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 89 move from the thematic area of start-up to business development after a number of years and avail of supports

The City & County Enterprise Boards run periodic Idea Generation sessions; but these sessions target a more general audience than Ideagen and typically address more general business start up issues.

The breakdown of participants is circa 50 per cent industry, 40 researchers with the remaining 10 per cent from the public sector or enterprise development groups.

and avail of enterprise and/or research supports to develop their business idea. Though these are in the early stages of development they are an indication that the Ideagen programme is delivering on its objectives.

and regions and to provide advice on available enterprise supports. The premise of the programme is that it leads to the development of new and not â€oeme too†businesses and services.

In addition, participants gain a greater knowledge and understanding of available supports for enterprise development and commercialisation of research.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 91 8 Enterprise Ireland Seed & Venture capital Fund Programme Programme Logic Model Objectives Further develop The irish

and scaling companies Inputs Enterprise Ireland contribution †as limited partners Private sector funds Outputs Commercially viable partner funds †based on Enterprise Ireland

and VC funding Availability of management expertise/advice through the Enterprise Ireland partner funds Activities Coordination

and Governance Enterprise Ireland invites and assesses proposals from potential funds to operate under this Scheme Enterprise Ireland coordinates the drawdown of funding by the partner funds As a limited partner in the partner funds Enterprise Ireland is represented on the Advisory boards of each of the

funds Outcomes & Impacts Companies and entrepreneurs benefit from an expanded pool of funds available for export oriented high technology start-ups

and seed funding sector †with greater private sector involvement and investment and aligned to the needs of the enterprise base Increased number of early stage

efficiency and effectiveness of the Enterprise Ireland Seed & Venture capital Programme. This is an interim evaluation,

which the Enterprise Ireland Seed & Venture capital Programme is delivering on its stated objective which is to further develop The irish VC sector

This approach has been supplemented by primary research involving consultations with representatives of the VC sector, of Enterprise Ireland as the programme provider and other relevant individuals in the area of enterprise development.

The data on the Enterprise Ireland partner funds is provided in terms of the two separate Schemes as it is not generally possible

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 93 The primary objective of a VC Fund is to make attractive capital profits for its investors by divesting its holding in investee companies after they have developed from being early stage companies

The Enterprise Ireland Seed & Venture capital Programme started in 1994 and there have been three Schemes to date;

This programme of activity was put in place to develop the enterprise environment as part of broader efforts that included, for example,

Under this programme of activity Enterprise Ireland partners with private sector seed & VC funds.

While most enterprises are not venture-backed, venture capital has a particularly important role to play in high-growth/high-risk enterprises.

Innovative firms, particularly in high technology sectors, find it difficult to raise more traditional forms of finance (e g. bank debt.

Enterprise Ireland Seed and Venture capital Funds Programme 76 Irish Venture capital Association, National Venture capital Association, British Venture capital Association cited in IVCA Report to Government, July

United nations FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 95 The Enterprise Ireland Seed & Venture capital Programme was conceived initially in the mid 1990s with a view to developing a viable and sustainable VC

The evidence available on the outlook for new, early stage, high growth companies suggested that there would continue to be a demand for VC investment from these enterprises at a rate similar or greater than that experienced over the preceding five years;

The study recommended that Enterprise Ireland should consider introducing a minimum size as an eligibility requirement for its support in the next Scheme of funds to assist the funds in achieving scale,

In assessing the impacts of the Enterprise Ireland Seed & Venture capital Programme it is essential that the national and international economic environment is considered.

and further funding for Enterprise Ireland to continue to act as a catalyst for the establishment of new funds

the Government launched the Enterprise Strategy Group Report, Ahead of the Curve. This report called for the adoption of a new enterprise strategy which would position Ireland to retain the competitive advantage it had achieved in an increasingly competitive global market.

Despite the advances made in developing a VC market in Ireland, the report identified continued market failures in the provision of risk capital to start-ups and stated that there was a continued need for some state intervention.

In parallel to this enterprise strategy report, Building Ireland†s Knowledge Economy †The irish Action Plan for Promoting Investment in R&d to 2010 was launched in July 2004.

and to forge new partnerships between these institutions and enterprise. The existence of a vibrant,

Ireland's Competitiveness Challenge FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 97 into the future is vital for the commercialisation of the research investments and commitments into tradable products and services

the Report of the Innovation Taskforce, 2010 states that â€oeventure capital has a particularly important role to play in high-growth enterprises. †It refers to the role of Enterprise Ireland

and the Enterprise Ireland Seed & Venture capital Scheme in developing the domestic Irish VC industry

so as to successfully scale innovative companies. †The programme fits with Enterprise Ireland†s stated corporate strategy85 that it will â€oesupport the development of seed

domestic and international venture capitalists) to secure longer-term finance to support the scaling of software companies. †Making it Happen †Growing Enterprise for Ireland,

and the emergence of high potential technology and knowledge based companies to support enterprise development stating â€oewe will support the development of a more dynamic,

state support for VC is only one part of a much wider support system for innovation and enterprise development.

The role of the state 85 Enterprise Ireland Transforming Irish Industry, Enterprise Ireland Strategy 2008-1010 86 Innovation Fund Ireland was launched in September 2010

and is a component of the National Recovery Plan 2011-2014. Through this initiative, the Government made available â 125 million for Enterprise Ireland to invest in international venture capital funds that establish a presence in Ireland

and that invest, at a minimum, an equivalent amount in Irish companies or companies with a significant presence in Ireland.

In addition, in cooperation with Enterprise Ireland, a number of commitments have been made that are due to be announced in the near term. 98 involves using different instruments to ensure that the business environment is conducive to the emergence

the development of robust business plans. 8. 5 Inputs & Implementation â 250 million has been committed by Enterprise Ireland to date across the two Schemes as follows. 2007†2012:

Implementation of the Seed & Venture capital Scheme Enterprise Ireland†s Role Enterprise Ireland†s primary role in relation to the Seed & Venture capital Programme relates to coordination and governance of the programme.

Enterprise Ireland invites and assesses proposals from potential funds to operate under this Scheme on an open and competitive basis. The proposals are assessed against a range of criteria including:

and Venture capital Scheme 2000-2006 are still open for making investments FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS

& ENTREPRENEURSHIP 99 These assessments are made by the Board of Enterprise Ireland with the assistance of a Seed and Venture capital Approvals Committee,

which includes both Enterprise Ireland members and other external public and private sector members. Enterprise Ireland manages the drawdown of its commitments by the partner funds.

Enterprise Ireland†s funding support is provided up to a maximum of 50 per cent of total fund size

which is the maximum amount of funding allowable under the EU approval for the scheme.

As a limited partner in the partner funds Enterprise Ireland is represented on the Advisory boards of each of the funds.

Enterprise Ireland also produces annual reports on the Seed & Venture capital Scheme providing detailed updates of the three VC initiatives undertaken in partnership with the private sector.

Enterprise Ireland engages with the fund managers on an ongoing basis as part of its coordination and governance functions.

Establishment of partner funds 24 funds have been established under Scheme 2 and 3 as set out in Table 7. 1. These funds successfully leveraged sufficient private sector investments based on the Enterprise Ireland contribution,

Enterprise Ireland Partner Funds established under the Seed & Venture capital Schemes 2 & 3 Scheme 2, 2000†200688 Size Scheme 3, 2007†2012 Size Total

Fund II Limited Partnership â 90m BOI Start-up and Emerging Sectors Equity Fund 2010 â 17m Enterprise Equity Investment Fund Ltd

. â 15m Delta Equity Fund III â 105m Enterprise Equity Seed Capital Investment Fund â 7m

Scheme Enterprise Ir LUATION OF II***â niversity â â 2010 â ies securing 10, investme artner funds extent of inv. ed & VC

Scheme Enterprise Ir ility of Mana seed funds h alise the opti nced investo for compani eneurship an A†s 2011 pub well as provi ies

with a hat Irish vestee hnologies FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 103 8. 7 Outcomes & Impacts There are a number of outcomes from the Enterprise Ireland Seed and Venture capital Programme †some

of which are linked more directly to the Enterprise Ireland Seed and Venture capital Programme †and others result from a range of factors relating to the overall business environment.

A note of caution relates to the challenges faced in providing comprehensive and comparative data for seed and VC funding.

The analysis below is based on data from the Enterprise Ireland Seed & Venture capital Programme Annual Reports and data provided from the European Venture capital Association (EVCA).

However, it is still considerably lower than that for a number of other countries that are appropriate benchmarks for Ireland in terms of their populations and enterprise base (Chart 8. 4 below.

Of this, approximately â 425.3 million (44 per cent) has been through the Enterprise Ireland Partner Funds 104 Chart 8. 4:

1. Private funds invest in the Enterprise Ireland partner funds Based on the Enterprise Ireland commitment of â 98 million to Scheme 2 the total investment funding available to companies

Based on the Enterprise Ireland commitment of â 152 million to Scheme 3 to date the total investment funding available to companies reached â 550 million by the end of 2010;

That is for every â 1 committed by Enterprise Ireland â 2. 60 was raised from the private sector.

(pop. 5. 3 m) Sweden (pop. 9. 1 m) â m illi on s FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS

A viable and sustainable VC and seed capital market in Ireland with greater private sector involvement and investment and aligned to the needs of the enterprise base.

Assessing the Enterprise Ireland partner funds against these criteria and reflecting the relative newness of a number of the funds under Scheme 3,

9 36 Yes BOI Venture capital Ltd. â 8m 7 7-Delta Equity Fund II Limited Partnership â 90m 26 167 Yes Enterprise

Equity Investment Fund Ltd. â 15m 10 38-Enterprise Equity Seed Capital Investment Fund â 7m 11 33 Yes European Bioscience

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 107 Viability and Sustainability of The irish VC Industry Measuring the commercial viability and sustainability of The irish VC industry,

of which the Enterprise Ireland partner funds account for roughly one third. However, against this measure, The irish VC industry does show signs of viability

This is most likely a function of the relative stage in the investment cycle of the Enterprise Ireland partner funds rather than the resilience of The irish VC industry per se.

in Sweden Finland Denmark Ireland FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 109 Chart 8. 7:

Alignment with Enterprise Needs A stated objective of the Enterprise Ireland Programme is to further develop The irish seed

Analysis of the sectoral breakdown of investments by number and volume of investment under the two Schemes clearly demonstrate that the Enterprise Ireland partner funds are investing in those high technology sectors where Ireland has demonstrated or emerging strengths, particularly the Lifesciences, software

Scheme 2 †Sectoral Breakdown of Investments by Enterprise Ireland Partner Funds FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 111 Chart 8. 9:

Scheme 3 †Sectoral Breakdown of Investments by Enterprise Ireland Partner Funds There may be scope for greater investment in the areas of clean technologies and technology based food products;

Enterprise Ireland Partner Funds †Breakdown of Investments by Stage of Development Though these figures are relatively small in absolute terms,

200 300 400 500 2007 2008 2009 2010 Sweden Finland Denmark Ireland FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 113

which covers two Schemes of the Enterprise Ireland Seed & Venture capital Programme97. Analysis of the outputs and impacts of the programme over this time indicates that it is appropriate to meet its objective

of which â 250 million was provided by Enterprise Ireland. Of the â 1. 024 billion available under the two Schemes

By 2010,805 investments have been made through the Enterprise Ireland partner funds in 186 separate companies with a combined value of â 425 million.

A review of the investments by sector shows clear alignment with the needs of The irish enterprise base.

Firstly, if the leveraging effects of Schemes 2 and 3 are combined each â 1 committed by the State to the partner funds attracted â 3 of private investment into the Enterprise Ireland partner funds.

and scaling companies 24 Enterprise Ireland partner funds have been established under Scheme 2 and 3; five of which have had

approximately â 425.3 million (44 per cent) has been through the Enterprise Ireland Partner Funds, 99 IVCA, 2011, Report to Government, July 2011.

Synergies and Complementarity The Enterprise Ireland Seed & Venture capital Programme is quite distinct from a number of agency delivered programmes in that it operates at the broader enterprise environment level rather than at that of the company or individual.

By their nature, recipients of VC funding through the Enterprise Ireland Partner Funds are very likely to be involved in research

Overlap/Duplication There is potentially some overlap between the Enterprise Ireland Seed & Venture capital Programme and the equity supports available through the HPSU package.

& VC financing through the Enterprise Ireland partner funds circa 15 per cent are HPSU clients of Enterprise Ireland.

Analysis of venture capital received by all Irish based companies between 2007 and 2010 shows that a similar number of HPSU clients have secured VC funding through non-Enterprise Ireland partner funds

This is challenging in the context of the Enterprise Ireland Seed & Venture capital Programme as typical measures such as cost per participant are not appropriate.

Venture Pulse 2007-2010 102 Enterprise Ireland cannot disclose the returns of the Funds either collectively or individually due to the commercial sensitivity of the information and the legal agreements that have been signed with the Partner Funds.

and is discussed only within the confines of the SVC Committee and the Board of Enterprise Ireland.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 115 In this context, it is most appropriate to measure the efficiency of the programme in terms of the leveraging effect of the State commitment,

of which the Enterprise Ireland partner funds account for roughly one third. The irish VC industry has shown not the scale of volatility that has been experienced in some other countries in terms of share of GDP, particularly the US, the UK and Israel,

This is most likely a function of the relative stage in the investment cycle of the Enterprise Ireland partner funds rather than the resilience of the Irish VC industry per se.

which is only appropriate for a small proportion of the overall enterprise base. The partner funds are managed independently by the private sector,

The overall effectiveness of the Enterprise Ireland Seed & Venture capital Programme notwithstanding there remains a need for The irish VC industry to continue to develop to bring it into line with international comparator countries

The Department of Jobs, Enterprise and Innovation should be cognisant of the financial return to the State through EI-Partner funds107. 105 Gilson, R. J.,2003, â€oeengineering a Venture capital Market:

Enterprise and Innovation should be cognisant of the financial return to the State through EI-Partner funds FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS

& ENTREPRENEURSHIP 117 9 City & County Enterprise Boards †Start Your Own Business Supports 2004-2010 Programme Logic Model Objectives Stimulate an increase in the number

by the Department of Jobs, Enterprise and Innovation Private Sector Funding Participant fees for training programmes Outputs Number of participants in receipt of supports each year Activities CEBS provide several supports

Training Management Development Finance Mentoring Enterprise Education Enterprise Promotion Outcomes & Impacts Increased number of Start-ups Increased number of entrepreneurs Increased employment Higher

survival rates of start-ups 118 9. 1 Background to City and County Enterprise Boards The network of City and County Enterprise Boards (CEBS) was established in 1993, during a time of high

It was recognised that micro enterprises (employing 10 or less people) could be a valuable source of employment and economic growth,

and that at that time, there was a gap in the provision of state supports to those enterprises.

The CEBS provide direct financial and soft supports to new and existing enterprises and promote entrepreneurship through109:

Supporting local developments that contribute to enterprise creation, the development of existing businesses or other economic benefits;

and, Fostering an awareness of the need for enterprise creation and development in their local area.

In 2007, a Central Co-ordination Unit (CCU) for the CEBS was established within Enterprise Ireland.

Galway City and Galway County are serviced by a single Enterprise Board. Cork County is served by three CEBS:

the Cork North, South Cork and West Cork County Enterprise Boards 109 This reflects the objectives set out in the Industrial Development Act 1995.

1) Support new enterprises via training, advice and support, mentoring, financial support;(2) Foster a spirit of enterprise:

schools, media events, Women in Business conference;(3) Enhance existing enterprises: advice, mentoring, training, networking, financial supports 110 Over 20,000 students a year now participate in the various CEB supported programmes implemented in the education sector FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS

& ENTREPRENEURSHIP 119 9. 2 Exchequer Funding to CEBS The SYOB programme of supports is delivered within the context of the wide range of inter-linked and complementary activities delivered by the CEBS to support,

encourage and promote an enterprise culture. Therefore, before moving on the specifics of the SYOB evaluation,

we set out the overall Exchequer funding of CEBS in order to put the SYOB programme funding into context.

DJEI and Enterprise Ireland CEB Central Co-ordination Unit 120 Table 9. 2: Using 2009 data this averages out as follows per individual CEB:

Enterprise Ireland CEB Central Co-ordination Unit FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 121 With effect from 2010 a new set of financial

Management Development, Training, Mentoring, Enterprise Education and Promotion. These supports are directed at both new and existing businesses

and also fund a range of activities in the wider community and in schools to promote a culture of enterprise.

Department of Jobs, Enterprise and Innovation, Enterprise Ireland CEB Central Coordination Unit 111 Some grants are refundable,

689,632 Mentoring 1, 479,388 1, 580,737 Enterprise Education 1, 155,270 978,163 Enterprise Promotion 2, 468,936 2, 512,064 Other 2, 026,008

Enterprise Ireland CEB Central Co-ordination Unit CEBS raise additional funds for Measure Two activities by making small charges for their training courses and by obtaining local sponsorship

County and City Enterprise Boards 113 The evaluation is informed by research and analysis undertaken by AECOM consultants, December 2011 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 123 courses per annum,

indicating that there are currently over 250 such courses offered annually on a nationwide basis114. Ultimately the objectives of the SYOB supports are to:

and reported under the EU European Regional Development Fund (ERDF) 2007-2013 for the BMW and Southern & Eastern Regions under the Entrepreneurship in Micro Enterprise Theme115.

The Department of Jobs, Enterprise and Innovation: Statement of Strategy (2008 †2010) highlighted the development of â€oeculture surrounding entrepreneurship through educational and society supports

existing reports and data provided by the Central Co-ordination Unit in Enterprise Ireland, case studies of 7 CEBS119 including office visits and analysis of locally available data, a survey of former SYOB participants,

there were considerable data challenges associated with this evaluation. 117 Report of the Enterprise Strategy Group, Ahead of the Curve, 2004 118 Framework for Evaluation of Enterprise Supports, 2011, Forfã¡

Dun Laoghaire/Rathdown, Cork city, Wexford, Tipperary North, Limerick City, Roscommon, Cavan FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 125

FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 127 Table 9. 7: Total CEB Spending on Supports for New Firms 2004-2009 Year 2004 2005 2006 2007 2008 2009 2010e (â †000)( â

A. Information and Advice B. Financial supports C. Training & Management Development D. Networking E. Developing an Enterprise Culture;

or may not fit the Enterprise Ireland portfolio; A business employing up to 10 employees; A manufacturing or internationally traded services business;

and only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland

Feasibility Grants †available to both start-ups and existing enterprises Feasibility Grants are designed to assist with researching market demand for a product

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 129 Business Expansion Grants Business Expansion Grants are targeted not toward start-up businesses.

E Developing an Enterprise Culture Encouraging and promoting an enterprise culture is an important area of activity for the CEBS.

A number of initiatives are run by the CEBS at both primary and secondary level including:

Student Enterprise Awards-Second Level; Exploring Enterprise-Second Level; Enterprise Encounter-Second Level; FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 131 Celtic Enterprise-Second Level;

Bi Gnothach Enterprise Programme-Primary Level; and Third Level Over 20,000 students a year now participate in the various CEB€ supported programmes implemented in the education sector F Other Activities The CEBS are involved in a wide range of other activities in response

to their local development mandate. These vary considerably from place to place. For example in the Border Region, CEBS are involved in a range of initiatives that are focused on local area development.

By way of example, over â 3. 064m was approved in 2011 by the European union under the INTERREG IVA Programme to support the Harnessing Natural resources (HNR) project.

It comprises 26 rural tourism and enterprise initiatives across the three counties of Cavan Fermanagh and Leitrim.

The project is managed by a consortium led by Cavan County Enterprise Board and will act as a catalyst for entrepreneurial activity and private sector investment in new businesses.

Enhancement of the environment and infrastructure, combined with economic and enterprise support initiatives, will be of long term benefit to the local economy.

A number of CEBS operate a Hi-Start programme which provides specialist support to those businesses with strong growth aspirations

and prepared for consideration by Enterprise Ireland as potential HPSU clients. In summary the typical CEB is engaged in a range of activities †supporting both start-up enterprises and existing micro businesses (Table 9. 8 Table 9. 8:

Type and Level of Activity of a Typical CEB Type of Activity Level of Activity †per annum Advice and Support-queries 800 †100 SYOB Training courses 5 †10

Management Development Programmes 30 Mentoring Assignments 110 Networks supported 1-4 Student Enterprises Initiatives 20,000 nationwide (All CEBS) CEB Activities specific

to Start-up Enterprises While it is clear that CEB activities have a focus on start-ups, the available data do not enable this to be encapsulated easily.

Separate budget allocations are allocated not between start-up and existing enterprise supports; and 132 For practical reasons, services, such as management training, may be delivered most effectively jointly to new and existing entrepreneurs.

the services arising from these activities are delivered to both new and existing enterprises. Only Priming Grants and the SYOB courses are focused solely on start-up enterprises.

The survey of the CEBS established indicated that with regard to management training, 44 per cent of activity is directed towards start-up enterprises.

The majority of mentoring assignments (58 per cent) is in respect of start-ups rather than existing firms.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 133 Table 9. 10: Total Number of Grants Approved Year Number of Grants Annual Growth rate(%)2004 864 9. 7 2005 948 9. 7 2006 894-5

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 135 All 142,392 10.9 (Annual average) Source:

Derived from CCU data The analysis conducted for this evaluation indicates that 80 per cent of financial supports are directed to start-up enterprises,

In Australia, the New Enterprise Incentive scheme (NEIS) offers an allowance to unemployed people to start a business with provision of an allowance for up to 1 year as well as rent allowance for up to 6 months127.

2001 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 137 Market Driven Start-up Programmes Evaluations of the deadweight impact of market driven business start up

Deadweight Estimates for Irish Projects Authors (Year) Evaluation of Deadweightestimate IEU (1999) 128 Micro Enterprise Supports 45%Forfã¡

(2000) 131 Seed and Venture capital Scheme 60%128 IEU, Evaluation of Micro Enterprise Supports Across National and Local Development Agencies, Industrial Evaluation Unit, Dublin

) NI 8 †32%Sheehan (1993) Capital Grants to Manufacturing Firms in Northern ireland NI 59%(approx) Monk (1990) Enterprise Board Investment UK

The Economic Journal, 90 (357). 1980 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 139 At times of high unemployment, where there are unused or underused resources in the economy,

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 141 Scaling of new start-ups;

me to assess feasibility of the enterprise 2 2. 8 Other (please specify) 2 2. 8 Total 71 100.0 Source:

Survey of SYOB Course Participants 2011 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 143 Existing Start-ups For the 10 per cent of participants that were already in start-up phase,

while there may be further efficiencies possible in terms of delivery FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 145 of services,

when the proposed establishment of the Local Enterprise Offices was announced in the Action Plan for Jobs 2012.

Department of Jobs, Enterprise and Innovation 146 Table 9. 24: Efficiency Indicators SYOB Indicators 2004 2005 2006 2007 2008 2009 2010 No of M1 Projects per â 1, 000 M1 Expenditure 0. 12

Synergies/Overlap The CEBS work alongside other State Enterprise Agencies (Enterprise Ireland, Shannon Development and à darã¡

and with Enterprise Ireland. A key element of the CEBS support for new start-ups is the provision of â€oestart Your Own Business†training.

In terms of any overlap with Enterprise Ireland our research found that this does not tend to occur,

with CEB clients not considering themselves to be appropriate for Enterprise Ireland supports. FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 147 Effectiveness SYOB Training Supports The research found the SYOB training supports had been very effective in the period evaluated.

At a minimum, 50 per cent of SYOB course participants go on to start-up a business,

which envisages the dissolution of the existing CEB offices and the creation of a new network of Local Enterprise Offices.

//Stenholm su grant. ppt FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 151 Appendix II:

and other enterprise supports such as the Enterprise Platform Programme. A considerable part of the analysis relates to process and the views of participants, Enterprise Ireland and the programme providers.

It provides an overview of participant views on the likely impact of the programme on sales, exports and employment growth.

research completed or other criteria defined by Enterprise Ireland Identifying key learning for the programme promoters

PA Consulting, Programme Director, Programme Manager and other staff members involved in the Propel Team The Enterprise Ireland programme coordinator

and 3 other Enterprise Ireland staff making up the Propel Team Representative sample of Enterprise Ireland staff who work with HPSU/Cord

and Programme Supports 3 of the trainers and 3 of the mentors used by PA/Enterprise Ireland in the delivery of the programme A complete 100 per cent sample of the current and past participants of the programme Other

stakeholders in Graduate Enterprise Programmes including one to one interviews 152 In addition, a member of the evaluation team attended one day of the two day residential workshops and observed trainers,

and delivery style of the trainers/mentors Effectiveness of communication between Enterprise Ireland, PA and participants Suggestions for improvements in the programme Ideas from best practice from other Enterprise Development Programmes in Ireland and overseas Unexpected benefits from the programme Future plans of the participants Impact

of the programme on the future of the participant†s Business plans Two separate questionnaires were designed

for instance, using Enterprise Ireland Technical staff to complete a Technical Assessment during Phase I of the programme.

The longer term actions primarily related to where Propel sits vis-Ã-vis the overall continuum of support offered by Enterprise Ireland.

FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 153 International comparators United kingdom There are a number of enterprise development programmes available in the UK

and two of the enterprise programmes assist SMES and entrepreneurs in a similar way to the Propel programme.

s Mark Ferguson Director General, Science Foundation Ireland John Murphy Secretary general, Department of Jobs, Enterprise and Innovation Barry O'Leary Chief executive, IDA

Ireland Frank Ryan Chief executive officer, Enterprise Ireland Michael O†Leary Secretary to the Board, Forfã¡s FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 155 Appendix IV:

Recent Forfã¡s Publications Annual Employment Survey Forfã¡s April 2014 Costs of Doing Business in Ireland 2014 NCC April 2014 Annual Business Survey of Economic Impact Forfã¡

s August 2013 Social Enterprise in Ireland: Sectoral Opportunities and Policy Issues Forfã¡s July 2013 Ireland's Construction Sector:

s January 2013 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 157 The publications of Forfã¡

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