ISA: Business Expansion Scheme to fuel innovation and create jobs

The Irish Software Association (ISA) has today welcomed the Government’s re-affirmation of its commitment to the expansion of the Business Expansion Scheme (BES).

This follows a Government survey of more than 1,400 businesses using the BES scheme that highlighted significant economic and social benefits through job creation and innovation.

“There are many small firms, particularly in the software & technology sector, that depend on BES investment to survive the difficult start-up development phase,” said Irish Software Association director Michèle Quinn.

“The extension and expansion of BES & Seed Capital schemes, announced in the Budget, will give a boost to the indigenous technology industry, which is a highly productive sector and will help sustain Irish competitiveness in a technologically advancing global economy.

“The survey found that 506 businesses of the 1,400 surveyed added to their staff as a direct result of BES investments, while one in three used the money to fund research and development. Clearly, the government’s decision to extend the scheme was based on sound economic sense.”

More than 50% of software start-ups have to-date relied on a combination of BES and the related Seed Capital Scheme.

Many successful Irish technology companies such as Ocuco, Rococo and technology spin-offs from IONA have availed of the schemes and are now successfully competing globally.

“Start-up technology firms can find it virtually impossible to access the finance needed,” said Ms Quinn.

“This is most evident for those seeking relatively modest equity of between €500,000 and €3m. BES and the Seed Capital Scheme have enabled start-ups to bridge the gap and have thus played a crucial role in supporting job creation in Ireland.

“We lobbied strongly over the past 18 months for this decision to be made and are confident that the Government made their decision to recommend the extension of the schemes based on economic grounds and as a support measure for the productive sector of the economy. We are hopeful that the schemes will be favourably looked upon by the EU when it makes it decision for approval of the schemes over the coming months.”