Minister O’Keeffe announces extra €55m investment in start-up firms

‘Government provides €187m over six years to help entrepreneurs get businesses off the ground’ - Minister

The number of high-potential start-up (HPSU) firms the Government supports through investment will rise to 100 within six years after an extra €55 million was set aside to give early-stage entrepreneurs capital to get their businesses off the ground, according to the Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD.

The Government expects the number of new HPSUs generated by supports from its indigenous job creation agency, Enterprise Ireland, to rise from 70 this year to 100 by 2016 following the extra €55 million funding injection.

Last year, Enterprise Ireland supported 73 HPSUs, with the same number forecast for this year.

Enterprise Ireland’s annual budget for the HPSUs is €22 million.

But over the next six years, the Government will allocate another €55 million to the agency to ramp up the number of HPSUs.

That will bring the total Government investment in HPSUs to €187 million between 2011 and 2016.

‘This week, the Government set aside an extra €55 million so that the number of HPSUs generated can be gradually ramped up - from 70 this year to 85 next year and to 100 by 2016.

‘The Innovation Taskforce called on Enterprise Ireland to prioritise start-up and early-stage enterprise activities and to draw innovative entrepreneurs to Ireland from abroad.

‘It is Government policy to support Irish early-stage entrepreneurs with increased funding so that we can drive export-led growth in the domestic economy, create jobs and generate investor confidence,’ said Minister O’Keeffe.

A HPSU is an export-oriented firm that has an innovative product or business model and would be expected to generate sales of over €1 million annually within three years and employ more than 10 workers.

It must also be led by an experienced team with a mixture of technical and commercial skills.

Each year, Enterprise Ireland gives between 200 and 250 potential entrepreneurs feasibility grants of about €15,000 after evaluating their business ideas.

Some are also referred to the county enterprise boards.

Just over a third of entrepreneurs who receive feasibility grants go on to develop their proposals and become designated HPSUs.

Then, they can attract private investment and Enterprise Ireland equity support.

‘The target to step up the number of Government-backed HPSUs to 100 by 2016 will be achieved by bringing new cohorts of entrepreneurs into play from areas such as clean technology, high-tech software and computer programming, life science and university research activities.

‘Supporting promising entrepreneurs is a key priority for this Government.

‘The 73 HPSUs supported last year projected that they will create more than 1,000 Irish jobs within the immediate three-year period following Government support.

‘The extra €55 million the Government has committed to HPSUs over the next six years demonstrates our commitment to driving a new culture of entrepreneurship in Ireland.

‘In addition to the immediate job creation potential, many of these HPSUs will continue to grow and generate significant numbers of high-quality new Irish jobs over many years,’ said Minister O’Keeffe.

Separately, the Government has allocated €6 million to a programme called Lean Business, run by Enterprise Ireland, which aims to make up to 400 firms more competitive by grant-aiding cost reduction and productivity projects.

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