Never mind the critics, entrepreneurship is alive and well in Ireland, writes Micheál Martin.
In Tuesday's Irish Times, Michael Casey, former assistant director general of the Central Bank, asked if there is something in our national psyche that stops us being good entrepreneurs. Current evidence - not opinion - shows his is an outdated view that has no place in 21st-century Ireland.
Entrepreneurship is alive and well in Ireland. Research by the Global Entrepreneurship Monitor confirms that Ireland now ranks as the fifth most entrepreneurial society in the world, with almost one in 10 adults actively planning or having recently set up a new business. This rating puts Ireland well ahead of the European average and close to US levels. The 2006 Yearbook published recently by Irish Entrepreneur magazine has listed more than 300 SMEs (small to medium-sized enterprises) that doubled their net worth between 2002 and 2004 - this is further proof of a highly entrepreneurial society.
Against this positive background it is particularly disappointing that Casey should be so dismissive of the efforts of the many thousands of Irish people who are setting up and growing businesses throughout the economy.
In 2005 alone, Enterprise Ireland invested in 75 HPSU (high potential start-up) companies. These 75 companies are expected to create 1,460 jobs and exports of €183 million within the next two years.
The 223 entrepreneurs behind the 75 new businesses come from a variety of backgrounds. Nearly 45 per cent of them were Irish entrepreneurs leaving existing Irish businesses to start new businesses. Iona Technologies, which emerged from Trinity College Dublin as a maker of compatible software for a diverse range of different computers, is the best example of this, spawning almost 30 other independent businesses over the years. That is Irish business, spawning new Irish businesses.
Serial or repeat entrepreneurs accounted for 18 per cent of this year's group of high potential growth companies, so those Irish entrepreneurs who have done it before, are doing it again and again.
In a recent study by Enterprise Ireland into about 500 HPSUs established over the past 15 years, by the end of last year those companies accounted for over
€1 billion in export sales, 10,000 jobs and are operating across a range of sectors, including software, the life sciences, medical devices, all of which are high growth areas.
It is important to bear in mind that none of those firms existed before 1990 and if that is not a clear cut example of entrepreneurial flair emerging in this country, then what is?
Irish business has the same challenge as the Munster team had in Cardiff last Saturday. They must silence their critics by showing fearlessness and self-belief in their ability to take their place among the best in the world.
Several examples exist across a range of sectors where indigenous industry has triumphed.
Some of those firms never make it on to the public's radar simply because they are business-to-business operations.
A few examples spring to mind. Creganna in Galway is a world leader in the medical devices arena. In Dublin, Xsil, which is less than four years old, employs 160 design engineers who design lasers used for micro-machining silicon. The scientific detail is intricate but the reality is that this is a wholly owned Irish firm at the cutting edge of modern technology employing top graduates from 12 countries in order to drive its business.
At the more public level, how many people know that when they buy their French bread that Cuisine de France was founded by Pat Loughrey, who was previously the boss of Batchelors in Ireland. Cuisine has been turned into an international brand since it was taken over several years ago by IAWS Plc. Goodfellas Pizza was founded by serial entrepreneur Neil McHugh of Green Isle, now part of Northern Foods in Britain. Today Goodfellas account for one in four pizzas sold on the British market.
An entrepreneurial mindset is only part of the picture. This needs to be backed by an economic environment that is supportive of business formation and growth. We need to ensure that aspiring entrepreneurs can find the information they need to help them establish and run their businesses; we need to ensure that there is sufficient finance available to enable good quality innovative business ideas to be brought to fruition; we need to help entrepreneurs develop world-class managerial capabilities; and we need to ensure that the regulatory environment is not an obstacle to the growth and development of enterprises in Ireland.
That is why I established the Small Business Forum and asked them to develop a strategy that would further improve the environment for small business in Ireland, foster more growth among small businesses, and deepen and strengthen the spirit of entrepreneurship that already exists here.
We already have well-developed listening mechanisms to hear what new start-ups need. For example, access to finance is regularly identified as a problem for start-ups. In the last week, I announced a new € 175 million Venture Capital fund that will leverage € 1 billion investment for start-up and early-stage companies.
Casey was right to focus on the importance of entrepreneurship as a key ingredient to our economic success.
However, I believe that his negative view of our track record on this issue is fundamentally mistaken. We are very fortunate to have a positive and supportive culture for entrepreneurial endeavour, and this is translating into the emergence of many high quality, high growth potential businesses.
The challenge now is to go on to make Ireland the most entrepreneurial country in the world. That ambition, based on the current evidence, not opinion, is a realistic one.
Micheál Martin is Minister for Enterprise, Trade and Employment