Start-ups of 2007 geared for growth

05-03-2008

by Deirdre McArdle

Last year's batch of high-potential start-ups in Ireland are poised to create as many as 880 new jobs over the next three years.

That's according to Enterprise Ireland, which supported the establishment of 79 such start-ups during 2007. These fledgling companies, which currently employ 660 people around the country, are expected to achieve sales of EUR756 million by 2011, with exports accounting for around 70 percent of this total.

According to Enterprise Minister Micheal Martin, this is the highest ever number of high-potential start-ups (HPSUs) supported by Enterprise Ireland in a single year. Over the three years of its 2005-2007 strategy, Enterprise Ireland had set a target of supporting 210 HPSUs. Wednesday's announcement brings to 221 the number of HPSUs established over the period, well above the organisation's target.

A total of EUR69 million is being invested into these companies from both the firms themselves and Enterprise Ireland, which contributed around EUR20 million overall. The money is being ploughed into areas such as R&D, employment and management development.

A high potential start-up is defined as a company which is based on technological innovation; likely to achieve sales of EUR1 million per annum and employment of 10; export oriented; and led by an experienced team, with a mixture of technical and commercial competencies.

Software and services start-ups were the most prevalent, with 47 new firms emerging from this sector alone in 2007, while eight of the companies were founded based on the commercialisation of third-level research.

Encouragingly, the start-ups were based throughout the country, a key priority for Enterprise Ireland as it tries to promote regional development. Forty-five of the 79 companies that achieved HPSU status in 2007 are located outside Dublin, with 22 companies located in the Border Midlands and West (BMW) region.