Total Entrepreneurial Activity for 2004 = 7.7%

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World Average TEA 9.6
European Average TEA 5.4

Entrepreneurship in Ireland

- Ireland Total Entrepreneurial Activity (TEA) index was 12.1% in 2001
- 1 in 12 adults currently involved in entrepreneurial activity.
- 115,000 nascent + 85,000 new firm entrepreneurs = 200,000 Irish entrepreneurs
- Ireland leads Europe but lags US significantly. Since 2001, TEA has declined by 33% in Ireland.
- Well-educated men in their mid-thirties starting new business. Women have lower participation rates than other developed countries.
- Entrepreneurship in Ireland is less need based.
- Nascent entrepreneurs are focusing on business services (30%), consumer services (17%), retail, hotel, restaurants (16%), manufacturing (4%).
- New firm entrepreneurs have established businesses in construction (21%), consumer services (21%), and business services (19%), manufacturing (2%).
- Although new businesses are small and owners wish to keep them small, 15% of Irish entrepreneurs believe they will employ twenty or more people within 5 years. These rates are greater than the US and Europe.
- Majority of business ideas being exploited are not hugely innovative, but based more on existing technology and existing local markets.
- Positive cultural and social norms and the media have promoted entrepreneurship activity. 2/3 of Irish adults consider that starting a business is a good career choice. 3/4 of Irish adults believe that high degree of status associated with being a successful entrepreneur.
- 1/3 of Irish adults felt there were good opportunities for new businesses in the next six months; however, Ireland’s relative position in Europe in terms of opportunity recognition (9th) is less positive than the country’s entrepreneurial activity rating (2nd). This may indicate further decline in entrepreneurial activity.
- There are shortcomings in the Irish environment including: limitations imposed on new businesses by small size of the Irish home market; availability of finance and seed capital for new businesses, fear of failure as part of cultural norms, R&D transfer from universities, lack of appropriate skills and experience needed to start new business, and shortcomings in physical infrastructure of doing business in Ireland.
- Majority of nascent entrepreneur financing comes from informal investment (or immediate family members). This rate has declined by 25% since 2001 and lags the US and Europe.
- There is a belief that government policies and programs are supportive of entrepreneurs.

Ireland has a very strong entrepreneurial community that is supported by the government, capital ventures (both abroad and domestic), and a very strong network of entrepreneurs. The European Union has steeped in to lend its support and the people of Ireland are responding. Ireland is not really considered as much of an emerging market and therefore there are many more Venture Capital firms and sources of Angel investors to obtain start up capital. Over the past decade, the Irish Government has implemented a series of national economic programs designed to curb inflation, reduce government spending, increase labor force skills, and promote foreign investment. Ireland joined in launching the euro currency system in January 1999 along with 10 other EU nations. The economy has felt the impact of the global economic slowdown in 2001-02, particularly in the high-tech export sector; the growth rate was cut by half. Growth is expected to be approximately 4% in 2003.

Best Bets
IRELAND - GEM 2004 Report
IRELAND - ALL ISLAND - GEM 2003 Report
Northern Ireland 2002 GEM Report

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