EI-backed companies contribute €17 billion to economy

ENTERPRISE Ireland has a potential client base of 3,500 companies which contributed €17 billion to the economy last year.

These firms employ 142,0000 people and accounted for over €10 billion in exports last year, an increase of 5.6% on the previous year, according to the agency’s annual report for 2004.

Frank Ryan, Enterprise Ireland chief executive, said the 5.6% rise in exports compares with growth of just 0.8% in 2003. Firms will have to improve their act if they are to maintain the success enjoyed over the past decade, he warned. That’s the firm conviction of the man charged with nursing them through an increasingly tough global market.

Companies will have to be more innovative and research-driven to maintain their success in the future.

They will also have to stay close to their customers.

“If they are truly serious about succeeding they will locate key personnel in their core overseas markets,” he said.

That’s the only way companies will be fully in touch with customer needs, he said. “If they know what their customers want then they stand a far better chance of meeting their needs.”

To aid that process Enterprise Ireland has 33 offices overseas.

But if companies want to build for the future, they will have to locate executives in their key markets, he said. Last year Enterprise Ireland assisted 154 companies to establish a market presence in major export markets worldwide.

Firms who are making it in today’s commercial environment are innovative, R&D driven and understand the need to deliver exactly what their customers want, he said. To help deliver better growth, the state company has initiated a €350,000 per company grant package to facilitate the introduction of better in-house systems and more sophisticated capital equipment. “That’s different to R&D and the aim is to get 300 companies to move to higher productivity in the next few years.”

Such initiatives are vital if the target of €3bn in additional exports is to be achieved by the end of 2007, said Mr Ryan.

To help Irish firms maintain a sustainable base, the state body committed €75m in grants and other forms of assistance last year.

“What we are trying to achieve now in Enterprise Ireland is a line-up of companies across all sectors of business that have competitive and sustainable business models. They will be close to their customers and capable of meeting their needs.”