Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan T.D. today (Monday 18th May 2009) launched the Global Entrepreneurship Monitor (GEM) Report for Ireland for 2008. The report, sponsored by Enterprise Ireland, Forfás and AIB, confirms that Ireland is at heart an entrepreneurial nation and to the fore in Europe in both the rate of early stage entrepreneurial activity (7.6%) and in the rate of established entrepreneurs (9%) among the adult population. With an average of 2,800 individuals setting up new businesses every month, entrepreneurial activity in Ireland remains high, according to the latest GEM report.
The rate at which individuals started businesses in Ireland (4.3%) continues well above the EU (2.7%) and OECD (3.3%) averages and compares well to the rate prevalent in the United States (5.0%).
The findings of the 2008 report confirm that culture and social norms remain broadly positive towards entrepreneurship and that the aspiration among people to become an entrepreneur in the medium term remains strong. The report also notes that in more challenging times, there is an increase in the numbers turning to entrepreneurship as a means of creating employment for themselves.
Welcoming the report the Tánaiste said: “We need all of what is best from entrepreneurship now more than ever. The establishment of new businesses can bring many benefits to the Irish economy and can enrich the base of SMEs while adding to competitiveness, innovation and employment creation. I am determined to ensure that as much support as possible is given to these entrepreneurs to allow them to create sustainable, innovative businesses, so that the employment and other economic benefits that flow from the creation of new businesses can benefit the wider community.”
Commenting on the report Brendan Flood, Head of Entrepreneurship and Regions at Enterprise Ireland said: “Starting and growing enterprises is fundamental to achieving regional economic growth. Entrepreneurship in Ireland is very much a grass roots movement, and the impact of these new enterprises is felt in every county. These entrepreneurs are critical to Ireland’s economic future and Enterprise Ireland is committed to supporting the entrepreneurship drive and helping export-focused Irish companies to grow internationally.”
Helena Acheson, Manager of the Enterprise & Regional Policy Division in Forfás, welcomes the evidence in the report that, compared to other developed countries, a higher proportion of Irish early stage entrepreneurs are innovative, are in technology sectors and are not exclusively focused on the home market. “There are marked differences between early stage entrepreneurs and those with longer established businesses. Early stage entrepreneurs increasingly tend to be more innovative and with a greater export focus”, she said.
Welcoming the 2008 report David Roberts, Head of Customer Propositions, AIB said: “The GEM report for the first time gives an insight into the level of entrepreneurship in the different regions of Ireland and demonstrates that even in challenging times the entrepreneurial spirit remains strong. AIB remains firmly committed to supporting those involved in running their own business and are open to new business ideas. Our team of business relationship managers are available throughout our nation-wide branch network to provide support to enterprising individuals and their businesses.”
The GEM Report is sponsored by Enterprise Ireland, Forfás and AIB. The authors of the report are Paula Fitzsimons, National GEM Coordinator, and Dr. Colm O'Gorman, Professor of Entrepreneurship, DCU Business School.
For further information contact:
Eileen Banks, Press Officer, Enterprise Ireland, Tel: +353 1 7272805, +353 87 2445814
Eileen.Banks@enterprise-ireland.com
Paula Fitzsimons National GEM Coordinator Mobile: 087 2774385, paula@fitzsimons-consulting.com
Notes to Editors:
The 2008 GEM Report is available on www.enterprise-ireland.com and www.forfas.ie as well as on www.gemconsortium.org
The findings include:
Despite the changed economic environment in Ireland in 2008, GEM reports that at the time of the 2008 survey (June 2008) there was no fall off in the level of those who had recently set up a new business (new firm entrepreneurs) (4.3%), that Ireland remained to the fore in Europe in early stage entrepreneurs (7.6%) and that there continues to be a high level of established owner managers at 9% of the adult population.
One in four (27%) of early stage entrepreneurs is a serial entrepreneur in that he/she has been involved in entrepreneurial activity previously.
Reflecting the economic conditions there is a significant decline in the number of people perceiving good opportunities to start a new business - down to 27% from 46% in 2007. The aspiration to start a new business in the next three years (10%), however, still remains strong.
The rate of early stage entrepreneurial activity among men increased from 10.6% in 2007 to 11.2%. As is the case in nearly every country in the world, the rate of early stage entrepreneurial activity among women is less than it is among men. Ireland is no exception. The rate of early stage entrepreneurial activity among women in 2008 was 4.0%, similar to the level in 2006, but lower than the rate in 2007 (5.9%).
The focus of activity among early stage entrepreneurs in 2008 is different to that reported in 2007. In 2008 fewer entrepreneurs focused on consumer related sectors (37%) than in the previous year (44%) and there was a more even distribution across the sectors including business services (30%) and transformative (25%) than had been the case previously.
GEM can report for the first time on the generally held belief that those born outside the country are more involved in early stage entrepreneurship. This widely held perception is in fact true. Those born outside the country and now living in Ireland are more entrepreneurial (9.1%) than those who were born in Ireland (7.3%). It should also be noted that those who have lived outside of Ireland for more than one year, whether they were born in Ireland or not, have a higher rate of entrepreneurial activity (10.5%) than have those who have never lived outside the country.
