'New firms need help' according to Amarach Research

Ireland’s early-stage entrepreneurs are in need of better mentoring services, improved access to funding and more support from large corporates if they are to successfully scale-up, according to a new survey.

The study — conducted by Amarach Research on behalf of Startup Ireland, the nationwide mentoring and lobby group for entrepreneurs — shows an increase (to 42%) in the number of start-ups in operation for one to three years, suggesting that more are surviving and moving into the next stage of growth by the year.

However, in terms of obstacles blocking their scaling ability, 81% said supports are difficult to access, while 79% said funding and talent were difficult to find.

Such obstacles are seen as a concern as recent research in the UK found that just 1% of start-ups there scale to achieve revenues of £1m or more six years after formation.

“Our survey highlights the fact that co-ordinated action, across the private and public sector, is needed to enable Ireland’s start-up sector to deliver to its full potential,” said Startup Ireland chief executive Eoin Costello.

“More people are engaging in setting up businesses of their own and it is imperative that we have the best start-up ecosystem in place to support these entrepreneurs,” said leading entrepreneur, Colm Lyon, who added early stage funding must be more accessible.

“However, most respondents to the survey believe we are not performing to our full potential.

"To build jobs, enterprise and well-being we need more businesses.

"The early stage of a business is its most crucial and we must focus our attention on ensuring that no stone is left unturned with respect to the support we can provide to early stage businesses.

“In doing so, we accelerate the development of the business so it can adapt faster, learn more and increase its chances of success.”

Mr Costello said: “If Ireland can get the fundamentals right at the beginning of the journey for start-ups, then there is the potential for larger numbers of start-ups to be able to start, scale and succeed from Ireland.

"Based on this representative sample [over 400 entrepreneurs were surveyed], there appears to be insufficient awareness amongst entrepreneurs of what supports are available, not enough accessible supports for scaling and entrepreneurs perceive that the start-up sector in Ireland is not cohesive and aligned.”