Speech by Minister Micheál Martin at the Entrepreneur of the Year Awards 2006

Minister for Enterprise Trade and Employment, Micheál Martin T.D at the Entrepreneur of the Year Awards 2006 on Thursday 28th September 2006 in Citywest Hotel Dublin

I am delighted to be here this evening to speak at the Ernst & Young Entrepreneur of the Year Awards. Now in its ninth year, the Awards provide a prestigious platform to honour the achievements of Ireland’s entrepreneurial community. I would like to extend a warm welcome to all of you, and in particular to those of you who have travelled from Northern Ireland.

Irish industry and entrepreneurship are of paramount importance to the Irish economy and to Irish society. The 2005 GEM report found that total entrepreneurial activity in Ireland reached 9.8%, the highest in the EU. Positive culture is consistently highlighted as the most significant factor in creating an environment conducive to entrepreneurial activity in Ireland. The Entrepreneur of the Year Award is one facet of this positive culture, which celebrates and recognises the achievement of our entrepreneurs.

Entrepreneurs and small and medium sized enterprises have emerged as the engine of economic and social development throughout Ireland. The role of entrepreneurship has evolved significantly and is now seen as a requisite ingredient in the global economy - generating employment, growth and international competitiveness. At this event we acknowledge the ambition, determination and inventiveness of entrepreneurs who have taken on the challenge of starting and building internationally competitive businesses. An increasing number of entrepreneurs are starting high value added, high export growth, and high potential companies.

Indigenous companies, and the businessmen and women that establish and drive them continue to play a central role in the Irish economy. During 2005 Ireland had the highest rate of new business start-ups in the European Union and was ranked fifth in entrepeneurial activity across OECD countries.

These companies make invaluable contributions to many local economies by providing high quality employment, sourcing products and services in the local economy, and by delivering new and innovative products to customers both at home and abroad and Irish companies spend over €16bn annually on payroll, Irish-sourced goods and services. Their ambition, creativity and the contribution they make to the lives of Irish people throughout the country should not be underestimated.

Many businesses start off small. The vibrancy of the small business sector is critical to Ireland’s future economic success. 97% of all businesses in Ireland are classified as small, although they employ almost 800,000 people. It is vital that we ensure that everything possible is being done to support their continued growth and development. Small businesses are important at a national level, for a number of reasons. They provide regionally distributed employment around the country. They also deliver a range of local services to the economic, social and cultural life of the entire population. They form an essential part of the supply chain for larger firms and, in particular, are part of the support infrastructure needed to attract and retain foreign investment.

Furthermore, entrepreneurship is critical to increasing Irish competitiveness as new services, products, processes and innovations increase efficiency, thereby improving the competitive strength of the economy as a whole.

Through Enterprise Ireland, state support for entrepreneurship is clearly focused on the ongoing creation of new high-growth export oriented, entrepreneur led companies. Enterprise Ireland provides a wide range of supports to Irish companies with a solid base in innovation, intellectual property and the ability to achieve and sustain international competitiveness.

Embracing international trade and harnessing the extensive opportunities in world markets for Irish small and medium enterprises, is key to Ireland’s continued expansionary economic performance. Future success internationally, lies in a number of critical areas. Companies must be in a position to undertake high quality sophisticated research, development and innovation. Investment in Research & Development can yield short, medium and long-term benefits. It can lead to the creation of new products, services and processes. Over time this investment can create strong networks with relevant research communities and relationships, which can identify future possibilities and business opportunities.

The evolution of the global economy offers potentially boundless opportunities for ambitious Irish enterprises. Exploiting the prospects offered by existing export markets and newer markets such as Central and Eastern Europe, China and India will be critical for future growth.

The State’s development agencies have pledged to take all the measures necessary to support client companies in their endeavours and provide a service that is adaptable, responsive and innovative.

The finalists gathered here represent 24 companies at various stages of development. They are in knowledge intensive sectors where they compete by continually anticipating and satisfying complex customer needs through the development of new and innovative products and services. Irish firms can create a sustainable competitive advantage in these sectors and hence the firms here today have the potential to grow very rapidly.

All display an excellent entrepreneurial vision and a belief in the importance of what they are doing. It is satisfying to note that many of the finalists have been supported and encouraged by the enterprise development agencies. Every entrepreneur experiences dark hours and tough times. They all need support and encouragement, and with the will, the ability and a bit of luck, they will overcome the obstacles and succeed. That is what we are celebrating here – the hard work and success of those entrepreneurs – and I applaud you all.

It is essential that success be celebrated. It confers benefits not only on the successful entrepreneur but also on the wider community. I admire the determination, ambition and leadership of the entrepreneurs behind the 24 finalists. I believe that tonight’s event will provide exposure and afford the opportunity to many people on the island to learn from our exceptional entrepreneurial role models. I hope that the outstanding success stories of the 24 finalists will play an essential part in encouraging others to follow their example. I wish you and future entrepreneurs every success for the future.

I congratulate Ernst and Young for their initiative and ongoing commitment to highlighting the success of entrepreneurship in Ireland.

ENDS/ETE 1633