Dáil Éireann Debate, Thursday - 23 January 2014
14. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the number of jobs supported by the competitive start fund operated by Enterprise Ireland; his views on the operation of the scheme; and if he will make a statement on the matter. [2965/14]
View answerEnterprise Ireland offers a range of financial and non-financial supports to assist companies through all stages of the business development cycle. Enterprise Ireland’s Competitive Start fund is aimed at accelerating the development of High Potential Start-Up companies (HPSUs) and creating a strong pipeline of HPSUs. Enterprise Ireland piloted the Competitive Start Fund in 2011 which aims to provide early stage companies with critical funds to test the market for their products and services and progress their business plans for the global marketplace.
Under the terms of the Competitive Start Fund, start-ups receive an equity investment of €50,000 for a 10% ordinary equity stake by Enterprise Ireland matched by €5,000 of promoter’s equity. In addition to funding, each start-up is provided with an experienced business mentor to provide support. The application process has been designed and improved to be fast and efficient to allow the new start-ups to concentrate on validating their business concept and getting to market entry stage as quickly as possible.
To date 204 early stage companies have been approved a total of €10.2 million in equity investment under the fund. These companies employed a total of 243 people (full-time & part-time) as of October 2012*. Twenty five of these companies have progressed to being HPSUs and have raised seed funding. In 2013 Enterprise Ireland’s provisional data shows that it supported the creation of 103 HPSUs. These companies will make a significant contribution to the Irish economy and have committed to creating a total of 2,100 new jobs and generating over €300 million in annual sales by the end of 2015.
In 2014 Enterprise Ireland will launch 7 Competitive Start Fund calls with a particular focus on encouraging female entrepreneurs, young or graduate entrepreneurs, manufacturing technologies and aviation start-ups.
* Based on the latest available 2012 Forfás Employment data.
