Minister for Enterprise, Tourism and Employment, Peter Burke, has published a Report entitled “Market Demand for and Supply of Scaling Finance in Ireland”.
The Report concludes that there is a gap in equity financing for Irish enterprises at the point where they are looking to scale up their businesses and realise their potential. It estimates that gap at about €1.1 billion over the next 2 to 5 years. It finds that demand for equity finance amongst scaling firms has increased in Ireland over the last decade and expects that trend will continue.
The Report, which was prepared by SQW Economic Research Consultants for the Department of Enterprise, Tourism and Employment, also finds that the gap is particularly acute for:
The Report goes on to describe other features of the gap and identify several factors that contribute to firms failing to secure adequate finance.
Commenting on the Report, Minister Burke said:
"One of the key commitments in the Programme for Government is to help Irish businesses scale up and grow internationally, retaining a substantial workforce here as well as building abroad. Ireland ranks highly in Europe for the number of start-ups, many of them truly pioneering. So, we have an excellent starting point to delivering on that commitment.
"I know from my engagement with enterprises across the country, that one of the key challenges they face is a gap in accessing capital. It can be the reason preventing them from realising their potential and growing into large, even multinational, businesses.
"The Report published today confirms and quantifies the gap in available finance for firms looking to scale up. The Report also provides us with insights on the nature, as well as the size, of that gap.
"These findings will inform the development of appropriate and targeted policy measures, which I intend to bring to Government later this year."
The Report can be found at: Market Demand for and Supply of Scaling Finance in Ireland
