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IRISH MOTHERS DON’T raise entrepreneurs.
None of my friends were pushed that way. When we were coming out of college and moving down career paths, it was towards the safety of the professions that we were shepherded. So much so that if someone said they were ‘setting something up’ or starting a business, it really meant that they hadn’t quite figured things out yet. And it certainly didn’t get you girls. (And that was important too.)
Those that had that particular spirit, and ambition, as my brother did, left for London or elsewhere. The ones that didn’t leave got in to property, and got wiped out.
Irish mothers don’t raise entrepreneurs. But then try telling that to the thousand or so people who descended on the Royal Dublin Society this past autumn for the Dublin Web Summit and F.ounders.
There they met people like the founders of LinkedIn and YouTube. Heard inspirational stories of success and failure from many gifted speakers. And most importantly, met each other, shared their own stories over a pint or two and talked about the various obstacles and opportunities to starting a tech business here in their native country. The average age was under 30, the future of this country.
There’s something happening here. All these people. All this ambition. Is it driven by necessity, the lack of jobs say, or is it driven by possibility, unrestricted and abundant in the digital age? Or is it cultural, a “cool” factor perhaps, brought on by a Hollywood makeover and some high-profile tech nerds? (Don’t underestimate the influence that the film Wall Street had on creating the banker generation).
Whatever it is, we have to help it.
Ok. But how?
The Chilean government has a programme to attract tech entrepreneurs to its shores called Start Up Chile. They want to convert Chile into the innovation hub of Latin America and to do this they’re offering foreigners €40,000, equity free, a one-year visa and access to the best social and capital networks in the country. They figure that if all these high potential people (1,000 in all by 2014) relocate to Chile, even for year, it can only have a positive effect on the indigenous scene.
Chile is going to flood its own nascent market of entrepreneurs in the hope of making it bigger and better
Many will probably leave. But some will stay. Yet it’s the wider cultural benefit over the five-year period that the Government is banking on. They’re going to flood their own nascent market of entrepreneurs in the hope of making it bigger and better. Changing their culture with help from abroad. It’s high risk, with no guaranteed returns and with outcomes that may be difficult to measure in any meaningful way. But it’s bold. And if it does work Chile has just secured its relevance and future in the new economy.
There may not be much point in debating the merits of this policy here because we simply don’t have that kind of money. But the idea, and the fact that the politicians and the bureaucrats actually got it to happen is pretty inspiring. We need to get this investment of foreign people (and their ideas and energy and ambition) in to the mix with our own talent.
Minister Bruton announced a new €10 million fund this year to attract overseas start-ups. This is going to be a welcome support for the sector no doubt. He’s talking mostly about targeting Irish people abroad, perhaps 20 to 30 start-ups, with Enterprise Ireland administering the scheme. Good idea, and it’s happening. What I’m talking about is a little different though.
Really what I want to know is, can we be as bold and as creative as the Chileans but without the money?
It’s the Taoiseach’s ambition that Ireland will be the best small country in the world in which to do business by 2016. My ambition, and it’s a little less grand, is that we’ll be the best country in Europe in which to start a tech business by 2016. Here’s some ideas, together with Minister Bruton’s, that could help make it happen:
We have to make it easier for founders to bring people from abroad to work with them
First you have to get rid of the barriers. So that any entrepreneur from anywhere can come here to get going. That means the right visa scheme. We have ‘business permission’ criteria in place but they’re behind the times. The government is preparing a new enterprise and investment scheme. Good. But we also have to make it easier for founders to bring people from abroad over to work with them. So we’ll need to do more here on the standard visa front too.
Another barrier is a lack of qualified software developers. This problem isn’t particular to Dublin, and while we should try and attract foreign developers here, we really need a good pool of domestic talent from which everyone can draw. So we need to get people thinking web development. And I don’t mean in school or in university. That’s really important too but we need these guys now. People are already discussing (and in a few cases implementing) programmes that convert unemployed engineers and architects in to digital developers. It’s a really exciting idea with lots of possibilities and the government needs to give it more attention.
With the barriers down we can try and make it easier for everyone to do what they do, and at the same time make it very attractive to do it here in Ireland. That means making it more acceptable. I’m talking here about bankruptcy laws and the acceptance of failure so that people can succeed. The Government is saying three years as the “discharge” period for bankruptcy. It needs to be less, like in the States or the UK.
It also means making it cheaper. Start-up companies don’t care about corporation tax rates, but they do care about the costs of doing business. And given the mobility of a lot of these enterprises they can and will go where costs are less. Here’s where we get to be really creative.
We could start with the entrepreneurial tax credit as recommended by the previous government’s Innovation Task Force, which would give a rebate of tax paid on salaries for the first three years, for every five jobs created (and capped at 100k). We could take this a little further and start to target specific people, like abolishing employer’s PRSI for software developers. Or, more radically, do away with income tax altogether for the first year. We wouldn’t be losing money because it would never have been here in the first place. But the people will spend their salaries in the country, will pay VAT, will rent apartments, eat in restaurants etc. And the real benefit in the longer term could be far more significant than the “lost” tax take.
You don’t have to incentivise a “go-getter” to go out and get: you just have to allow them to
Ultimately though the Government will have to put its money where its mouth it if it’s to get serious. What money? Well there is some money, we are taking in tens of billions each year. So this would be a question of priorities. Do we connect the two LUAS lines in Dublin City, or do we give the entire country the best broadband of anywhere in the world, ever? This isn’t to knock the necessity of the LUAS interconnector, but I think it’s easy to understand which investment is more important for the future of this country. (I think we should do both and cut somewhere else, but the question remains: where?)
And then we need to sell. Like Start Up Chile or Start Up America. Decide the brand, decide the package, and get it out there. Again, the Innovation Task Force was quite good on this. I believe we’re a special place already, but bringing in some of the measures above, as well as others, could really kick things off quite quickly. Just look what one man and a dedicated team have done with the Websummit/F.ounders series.
We want to support our young tech entrepreneurs. We want it to be easier for them to do what they do, and we want them to do it better. We want to help but without getting in the way or attaching too many strings. And always keeping in mind that you don’t have to incentivise a “go-getter” to go out and get, you just have to allow them to – they’ll figure the rest out for themselves. Including selling it to their mothers.
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Not to seem like a stick in the mud, but Ireland’s fascination with tech entrepreneurs is actually annoying. There are schemes going on all over the country where people are given free offices, are paid and get every assistance off the state and enterprise Ireland possible. The problem is most of these companies aren’t working and will never work. They don’t employ people and never will. And yet millions are thrown at them year on year. What’s even more gauling is Irish tech start ups do not create Irish jobs when successful, well at least 99% of them. I know people who run single store shops who employ more people than some successful Irish tech businesses. And yet the snobbish attitude of enterprise Ireland, the various bodies and sometimes the actual entrepreneurs continues whilst trying to convince us mere mortals that we must park every other industry so that we can push an industry where the whole point is that less people / employees are needed.
absolutely wonderful post. there is more to do in world then just “tech”. what about the mechanics,technicians,manufacturers,doctors, builder, & designers. well balanced economy is better than the economy reliant on one specific sector . have we learned nothing from the “housing boom”.
Oh feck. Can’t help myself agreeing here too and yer getting an awful bashing from the shiny happy people. Will I ever learn?
Reada we’ll have to stop agreeing like this, people will start talking ;)
I agree. We always tout “ooh look, we’ve excellent tech people these are all our creations look at us, we fostered this innovation etc.” Absolute lies. They’re codding themselves if they think its all their work that creates tech start ups here. The current first and second level education system is built to ignore anybody who takes interest in computers or technology in general. It’s stupid and incredibly rude to take credit for something that you didn’t lift a finger to help.
Excellent response Diarmuid to all the baloney about Ireland being some kind of midAtlantic technology haven – More like an Atlantis. After years and years of soaking the taxpayer, there is really SFA to show. Billions, not millions, nor even tens of millions, but billions have gone into third level R&D and yet graduate emigration is sky high and employment is shrinking. Any likely startup has almost immediately grasped a trade sale to a multinational, making its founders rich and depriving the country of a potentially scalable industry. The founders of course in the main are already permanent public sector employees in the Third Level. Risk free capitalism, if only it were available to all.
Oh dear Eoghan. Looks like there’s a few current or potential Irish Daddies you’re going to have to blame too. :-)
“Those fighting for free enterprise and free competition do not defend the interests of those rich today. They want a free hand left to unknown men who will be the entrepreneurs of tomorrow…”
Ludwig von Mises
Too bloody right, mate and I especially liked your remark about the ‘snobbishness’ of Enterprise Ireland although I’d prefer to call it smugness. The whole system is lip-service to need rather than real tangible support.
I’d say Eoghan is really thrilled you were first the first to comment on his thread Diarmaid. You really rained on his parade.
Btw if you were in his “party” I’d be expecting your P45 in the post. Plenty of room for you on my side though Diarmaid. I’ll make a socialist out of you yet!!! :D
Ha ha, Reada I got that p45 a long time ago ;) Hate the notion of towing the line, even if it goes against your own beliefs. I have to say though I totally agree with your own and some of the above posters comments, one in particular. There is a fundamental flaw with the whole Enterprise board and Ireland system. I am not public sector bashing, however, the notion that civil servants are best placed to make decisions on commercial funding decisions on start up companies is fanciful to say the least. It is, as Ardo put it, box ticking. Some civil servants think Facebook and Groupon are great, so decide that they’ll stop offering support to every sector, bar tech, in some deluded notion that some UCD graduate is going to come up with the next Social Network or paypal. REAL Tech entrepreneurs don’t get support or probably wouldn’t take it. Look at the two teenagers from Limerick (their names evade me). They set up a new tech company, sold and now are starting again and have got Paypal investing, not Enterprise Ireland. Are they based in Ireland? No! They are out in the states, where the real tech heads go if they want to make money. Did they create any jobs? No, they didn’t! That’s not a dig btw, it’s just reality. Meanwhile back in the land of the living and sane, there are innovative companies outside the tech sector that could do with funding to get going and create jobs, getting CHARGED by Enterprise Ireland for mentoring, whilst mad business ideas get funded just cause they have a .com in their business idea. So Eoghan, if you want to write a similar piece like that again, I suggest you walk into some of the “innovation” hubs dotted throughout the country and have a good long look at some of the “businesses” getting funded before you come out with that type of rubbish. Oh and Reada, I think we should set up our own party. If nothing else the party meetings would be great craic ;)
I nominate you secretary. You’re one bloody fast typist.
We’re definitely going to get in trouble with the thread police now. ;)
@Diarmaid, yes, I think people may have interpreted your comments as bashing the tech sector, but it’s actually problems created by the government that makes tech start ups go to America. Google has said that it can’t get enough skilled Irish workers. We’re allowing the government to name drop Microsoft, Google and others. You never hear them trumpeting things like Sugru, Heystak or Intercom, which is more of what we really need over here, tech companies that pay taxes and put money into the Irish economy. We’re in a dire situation, but if we start digging ourselves out of our graves, we can have some sense of hope.
I think that Ireland has missed the bus.
If I was young again having to face all the challanges that life throws at you I would not remain in a country which in their history have only enjoyed one economic upturn and have squandered this opportunity to remain on top.
Ireland is sadly geographically at a disadvantage and the braindrain that has taken place since the celtic tiger collapsed must be of mammoth proportions.
The headline of this column is: Keeping The tech entrepreneurs here.
Most of these hi tec brainers are gone.
How will you get them back?
Startup businesses don’t need hand outs, they need customers. This is the fundamental problem for any business in Ireland, especially in the tech space – our tiny population. So we build for international markets, why establish a startup in Ireland if your main customer is in UK, USA or Germany?
As for government bodies, I’m not sure if government bodies are the right people to be funding anything, with tax payers money. It’s high risk, and when government gets involved in anything it can lead to small corruption – backing Mr A over Mr B. EI can also skew competition by backing some startups and not others in the same space. They also back experience over idea or innovation, so on that gauge Microsoft, Apple, Facebook would not have been funded.
Also if the government opened up government contracts and e-tenders to micro-businesses it would help the industry more than more free aid.
I don’t think entrepreneurs need to be encouraged to start a business, you either are, or you are not. Entrepreneurs should be out selling and getting customers instead of filling in forms for tiny amounts of money, that is after all tax payers money!
Right now we need tech graduates, but the industry knew this 5 years ago and it is only in the past week that the government has realized it, with the IDA comment last week.
Nice idea, but probably a decade too late.
Too much red tape required to set up a proper business.
Real short courses needed to obtain qualification/certs in required disciplines. Need to be free, government sponsored allowing people to reskill across disciplines and start up own business.
Use unemployed skill base as trainers, simple
thats sort of happening already, im doing a course in computing in u.l ,its not free its subsidised by the government, whilst some of the class are on the springboard initiative , which it is free for them ,they get their dole and an allowance , most of them are construction or engineering grads !
I have to say that red tape isn’t the biggest barrier to setting up a business in Ireland. Once some revenue comes in you need to be careful with your taxes but that is one of those ‘good problems’. Far, far, far harder is finding customers that’ll buy your service or product at a profit.
Isn’t the elephant that a lot of (finally) successful entrepreneurs been through the bust and boom cycle a few times (or if you wish, the school of hard knocks)
In the US and the UK if you fail, you can clean yourself up and try again. and again and again
here, 12 years in the dumps
Sounds like cop on isn’t something happening in this area!
I write to you from the edge of the Silicon Valley in California, where 30 percent of all road accidents are attributable to drivers talking or texting, where cyber-bulyling torments our children, where our schools are in a death spiral our politicians are corrupt, our taxes high, our air and water polluted, where the very rich are getting richer by the minute and the poor are getting poorer by the millions.
I stepped out one afternoon in Cork City to see a school releasing its children after the day’s studies had ended. They were carrying a few books, talking, laughing and engaging one another and the world they were walking in. In Mill Valley, California, children leave school carrying enormous backpacks that cause them to bend forward to achieve balance. Once on the street, they whip out their cellular devices and begin texting, and will continue to do so until they reach their homes. They are constantly distracted, with the attention span of a goldfish. This “disorder” requires medication for what is termed “A.D.D.”
Well, they’re only kids. There were countless millions made by the entrepreneurs. Welcome to your future, my technical geniuses. Welcome and be warned.
Er, sorry, that should have been “cyber-bullying”.
I am currently in Santiago de Chile on the StartupChile program. I can understand people’s frustration with the golden boy status of tech startups in Ireland. I also get how stressful and frustrating it can be dealing with local enterprise boards. Even though I’m in the tech sector, we certainly didn’t qualify for support from any government body in Ireland.
EI’s requirements to take companies on as clients seem clear and unbiased. They are focused (from the top of my head) on supporting projects which have the potential to support 10 jobs in a 4 year timespan. For the most part, that isn’t a tech startup, nor does it bias itself towards tech startups. The one thing that tech co’s do have on their side is that often times, their product is easily exportable. So its swings and roundabouts. If I were manufacturing something, I’d find it far easier to justify hiring 10 people in a 4 year time frame, but it might be harder for me to demonstrate how I would grow internationally.
In short, I don’t think you can fault tech startups for promoting themselves. I don’t think there is a bias in the system, only a natural strength and weakness in each sector.
As for whether government employees are in the right place to allocate funds? As far as I know, EI is the most successful investment vehicle in Ireland in terms of returns. Forgetting for a moment that they are part of the government, they seem to be the best team currently available to distribute funds.
They are smart people put in the unfortunate position of saying ‘no’ 99% of the time.
Do I think Ireland should run its own ‘startupchile’? Probably not. Chile is a rich country, slated to grow at least 6% this year. The $40m or so they are spending on StartupChile is a cherry on the cake, rather than the bread and butter that Ireland needs.
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