Startups should have access to the cash they need to thrive

Irish startups, whether they are small or large, should have a place to put their money to ensure they get their start-up business off the ground, Business Ireland said in a new report.

The bank says the start-ups it has assessed are not yet viable in the Irish economy but are a key source of capital for companies in the country.

The report, published today, outlines the findings of a three-year review of how Irish businesses can access the funds they need for the future.

The review, which started in July, has identified that the financial services sector is the most important financial sector in the economy and the next generation of entrepreneurs needs a safe, secure place to start and grow.

The State is spending €60m on new capital and the start up sector accounts for more than 10 per cent of Ireland’s economy, the report said.

“There are around 600,000 Irish start ups, which is an investment that needs to be done.

We have seen a significant investment in Ireland’s start-Ups over the last five years and we need to make sure we’re providing our new entrepreneurs with a safe and secure place of origin,” Business Ireland’s chief economist, Dr John Kelly, said.

The Government has also made a significant step towards securing the future of start- ups by making a grant of €200,000 a year for new start- Ups and a new incentive scheme for entrepreneurs to take the next step.

This means that starting up firms in Ireland will be eligible for grants of up to €5m over the next five years.

However, the State has also committed to provide €3m a year in funding to Ireland’s Start Up Start-Up Agency, which aims to provide start- up companies with funding and support to grow and prosper.

This year, more than 1,300 start-Up Start-UPS were awarded funding from the Government, up from around 450 last year.

The agency has been given €50m and has been able to offer support to over 300 start-UPs, the bank said.

There are also new programmes to support start–ups including €2m in new funding for start- Up Start Up Loans and €1m to support Start- Up Startup Grants, which will allow start- Ups to borrow up to an initial investment of €2,000.

“The Government is investing in Ireland to enable Irish entrepreneurs to get on their feet and grow and we want to support them as they do so,” Mr Kelly said.

This article first appeared on the Irish Times website.

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