For entrepreneurs, the pace of IPOs is pedestrian and that looks like continuing without some form of policy initiative

For entrepreneurs, the pace of IPOs is pedestrian and that looks like continuing without some form of policy initiative

Last week I attended an evening for a group of Munster-based companies that met to debate funding options for their future growth.

It was an eclectic group of businesses representing a variety of sectors.

All are at different stages of their development but the common denominator was their entrepreneurial spirit.

The room was fizzing with energy as we listened to stories about how these companies compete and look forward to growing and expanding across many international markets.

It is hard to teach entrepreneurship.

Only a certain kind of individual has the unique hunger and ability to take on the responsibilities and risks attached to starting or running a company.

If Ireland is to grow waves of successful companies to complement the multinationals who choose the Republic as a base then it must do better at fostering and encouraging domestic business.

Enterprise Ireland (EI) has a strong reputation for its support of start-up companies but there is a problem with the way in which we help companies scale up and finance themselves.

For entrepreneurs, the pace of IPOs is pedestrian and that looks like continuing without some form of policy initiative

Too often, the short-term appeal of hefty cheques convinces some entrepreneurs to cash in.

By so doing they pass over the future of those businesses to international concerns.

Finding ways to convince Irish entrepeneurs to stay independent is a challenge for policymakers.

I’m convinced both Enterprise Ireland and the Ireland Strategic Investment Fund (Isif) can play a key role in this if they work with the stock exchange to provide a funding package that allows companies to list with relative ease.

They already co-operate to run a programme for entrepreneurs.

However, they need to go a step further.

EI, ISIF, and the stock exchange should offer a funding package that only kicks in if a company can secure at least 75% of its funding needs from the private investment community.

If that is possible, then Isif and EI would invest in equity on exactly the same terms as those money managers while also contributing to the legal and accounting costs of the IPO if the listing is in Dublin.

Quite frankly, the pace of IPOs is pedestrian and that looks like continuing for the foreseeable future without some form of policy initiative.

Joe Gill is director of origination and corporate broking with Goodbody Stockbrokers. His views are personal.

More on this topic

Enterprise Ireland targeting 50% growth in Irish exports to region by 2020Enterprise Ireland targeting 50% growth in Irish exports to region by 2020

More in this Section

Fortunes of UK and Irish supermarkets take separate pathsFortunes of UK and Irish supermarkets take separate paths

Irish businesses brace for ‘blond bombshell’ Johnson in Number 10  Irish businesses brace for ‘blond bombshell’ Johnson in Number 10

Radio Kerry proposed bid for Clare FM and Tipp FM comes to an endRadio Kerry proposed bid for Clare FM and Tipp FM comes to an end

Iarnród Éireann has €1.1m deficit as user numbers riseIarnród Éireann has €1.1m deficit as user numbers rise

More by this author

Time To Focus on the Earth and not the Moon and the StarsTime To Focus on the Earth and not the Moon and the Stars

Cork faces some key planning decisions if goal is civic and economic core to be proud of in 20 yearsCork faces some key planning decisions if goal is civic and economic core to be proud of in 20 years

Retirement shouldn't see one's 'FIRE' burning outRetirement shouldn't see one's 'FIRE' burning out

Mercosur beef trade deal will test Ireland's diplomacy skillsMercosur beef trade deal will test Ireland's diplomacy skills


Lifestyle

Homemade ice pops are handy for many reasons, they refresh on a warm day, but also you know exactly what is in them; no strange colourings or preservatives.Michelle Darmody's home made ice pops

Sometimes travel can be more about the journey than the destination, as Caroline Hennessy and her family discovered when they took a 13-hour overnight journey from San Sebastián to Lisbon to check out the Trenhotel experienceTravelling by train in Europe - with kids

The Great Hack looks at the implications of the scandal involving Cambridge Analytica and Facebook, writes Laura Harding.When tech firms go bad: Netflix's new documentary on Cambridge Analytica / Facebook scandal

Often hailed as one of the greatest animated films ever made, The Lion King has a special place in the hearts of generations of children.New King of the jungle: The director behind The Lion King remake

More From The Irish Examiner