How small firms are driving Ireland out of recession
THE depths of a recession would seem, at first glance, to be the worst time to start a new business. Yet a recent survey reveals that almost half the population would like to be their own boss, and almost a quarter of them have already taken steps to make this dream a reality.
In 2009, 1,080 people took the plunge into the deep end of self employment every month — a figure that seems set to be exceeded in 2010.
A recent EU survey confirmed Ireland has a bigger entrepreneurial spirit than any of European neighbours — a fact spurred on by the recession.
“Taking the plunge and starting a business can be risky and the survey shows that across Europe, Irish people are among the most willing to throw caution to the wind,” says Avine McNally of the Small Firms Association.
“Irish small businesses have always been a source of employment and a major vehicle for change. They are important because they create jobs, and they are different because they are managed by people who take risks with their own money.”
Entrepreneurial activity must be championed as an important component of our national ability to create wealth, she adds, as a way of encouraging innovation; and as an important mechanism for increasing economic growth.
In the SFA’s Autumn Business Sentiment Survey, 29% of respondents expected future business to be very good despite the challenging marketplace.
“Recessions can be good times to start a business in terms of having a larger pool of highly skilled people to choose from,” says Sean Gallagher of Dragon’s Den.
“Recessions breed a spirit of hard work and survival instinct that’s been missing in Ireland over the past 10 years. Entrepreneurial spirit is sometimes mistakenly associated with just making a buck, but it is actually about identifying a need and responding to it.”
Jerry Kenneally of the Young Entrepreneur Programme, and former chief executive of Stockbyte before selling it for €100 million believes a recession can be a great time to start a business.
“Business models which offer the customer substantially more choice, control, savings, speed or price are compelling.
“Existing businesses which have high fixed costs and don’t challenge those costs will be undermined by lean, mean, start-ups who serve customer needs better and who challenge the conventions of sleepy existing businesses,” he says.
As the horizon of 2011 stretches out ahead on this New Year, many would-be entrepreneurs will finally take the plunge in a myriad of enterprises around. Some will fail and many will triumph but all will answer to the same steadfast instinct to do it their own way.
Tower Aqua is Europe’s leading abalone farm. The company provides live Japanese abalone for sale around the world as well as selling directly to individual restaurants. Also provides an end to end consultancy service to farmers needing assistance with developing their abalone farms.
Michael O’Neill.
West Cork.
ABALONE, a Japanese shellfish considered a delicacy throughout Asia, is delivering great export success for an organic marine farm in West Cork.
All of the one million abalone in Tower Aqua’s 20,000sq ft of tanks in Bantry Bay have already been ordered by Japanese and other Asian restaurants in England. The company now plans to increase to the facility’s full 40-tonne capacity and, within the next 18 months, to develop into a business worth €2-€3m annually.
“I started with a feasibility study in 2004,” says Michael O’Neill of Tower Aqua.
“I was in the fishing industry at the time and I could see the writing on the wall. Aquaculture seemed like the natural choice for me.
“My inspiration came from Jack and Mary Sullivan’s abalone hatchery in Bere Island. They did a lot of groundbreaking work in that area. I looked at what they were doing and did some research with BIM. There seemed to be great demand.
“This is not a fast buck business. It took me two years to get the planning and construction in place.
” I am delighted with the way things are working out. Our timing was perfect, even though we didn’t really know it ourselves at the time.”
Japanese abalone is now one of the most sought after species in the world. Tower Aqua is looking at expanding into dried abalone, which sells for about 1,500 per kilogram.
“Japanese cooking uses it boiled, steamed, marinated and raw, somewhat like sushi. Chinese cooking with abalone tends to be more slow-cooked.
“The Bantry Bay shellfish are farmed in clear Atlantic seawater and fed on organic sustainable seaweed.
“Many competitors use a fishmeal-based feed. The plant’s eco-friendly internal cleaning system only pumps 10% of the water used by other abalone farms around the world.
“It uses biological, U/V and mechanical filtration, ensuring water of remarkable purity,” says Michael.
Japanese restaurant owners snapped up Tower Aqua’s abalone during Michael O’Neill’s recent visit to London. They said the flavour was every bit as good as the native Asian species.
“We had 20 appointments in London, 18 were successful,” said Michael O’Neill.
“Chinese restaurants don’t use abalone as much as in other Asian cuisine, which was a learning curve for me. Water quality is a priority, and we have a real advantage there. That is why we chose our remote location.
“The real positive was to learn that the market is now even bigger than we had thought.
” We are now looking at developing into higher end restaurants in Europe. We have tried to develop a commercial attitude from day one.
” Things are looking good and we are quite happy with the response.”
In recent years, new EU alien species legislation has prohibited the introduction of unusual or non-native species to the EU.
As the eso awabi (haliotis discus hannai) or Japanese abalone has been present in Irish waters for almost 30, Tower Aqua is allowed to farm this very special Japanese Abalone.
Independent training consultant and certified master trainer in Edward de Bono’s Six Thinking Hats and Lateral Thinking training programmes. Has worked with a variety of clients in Ireland, Britain and South Africa, presenting a range of programmes on presentation skills, time management, stress management and team building.
Barry Lynch.
Cork.
“2011 is obviously going to be a challenging year, but I’m lucky in that I’ve a number of key clients that have not cut back their investment in training and development.
“During an economic downturn it’s often one of the first areas in which organisations reduce their spend, even though it’s actually key for long-term growth and survival. It takes a while to readjust to running a business in a recession, but once you do, you learn some important lessons about how to survive.
“The main affect on my business over the last two years has been a move away from standardised ‘off-the-shelf’ group training programmes, to more one-to-one customised coaching and development programmes — a more targeted approach to how clients are investing in their people.
“You have to have confidence in your own abilities, irrespective of whether you’re in the midst of an economic boom or not. The enthusiasm and drive comes from believing in what you do, and getting enjoyment from it too.
“Family support is vital, especially if you work from home as I do. Having an office in a house full of children gives a whole new meaning to the concept of work-life balance. But once you master that, the advantages are huge.
“I spent 12 years working in multi- national organisations, and part of my role was identifying and selecting external training consultants to come and deliver in-house programmes to our employees.
“So now I’m still in the same field, but just on the opposite side of the fence. Not everyone is suited to self-employment, and it definitely requires a certain set of skills and attitudes, but if you think you have them, you owe it to yourself to give it a go.
“On an international scale, Edward de Bono, the originator of the concept of ‘lateral thinking’ inspires me. It was primarily as a result of attending one of his training programmes in 1995 that I made the transition from engineering to training and development, and became a certified trainer in his tools and techniques.
In Cork, a colleague of mine, Martin Brennan of Proactive Management was very influential in my decision to start my own business, and continues to motivate, support and inspire me.
“Ireland will recover, but it’s going to take quite a while, and will require a big change in thinking about who we are and what we do, and not just in the business community. In business it’s vital to have really good time-management skills, and to use the phrase that appears in every job-advertisement, you have to be a ‘self-starter’.
I’ve had the opportunity to travel quite a bit during my career, and even though it was enjoyable, I have no desire to leave here now. Ireland suits me, both from a business perspective, and from a family-life perspective.”
Kits designed for children in the six to 12 age group and act as a basic introduction to pattern cutting, stitching, sewing buttons, gluing and beading. Member of the Crafts Council of Ireland and has been awarded a highly commended by the National Trade Body for the British home and gift industry.
Barbara Bradshaw.
Dublin.
“If you don’t believe totally in what you are doing nobody else will, and I remain driven despite the endless difficulties of business, because I just love what I do, and am determined to make it work.
“Mostly I feel excitement at this point of 2011 as we are planning to expand our business to incorporate services aimed at crafts in schools and craft parties for kids this year.
“A lot of the craft shops throughout Ireland and the UK which we were supplying have had their own difficulties, and as a consequence orders became much thinner on the ground. Rather than waiting about for times to change, we decided we would take matters into our own hands and restructured ourselves.
“We opened our own online shop first, then started a campaign in which we fought hard to let people know about our products, we pitched our product to the Late Late Toy Show and the response has been fantastic. We also have taken on technology more, utilising Facebook, Twitter and Google Ads.
“It’s good to have people around you who speak the same language. However, a word of warning to start ups, don’t do your market research on your own family, as generally they tend to encourage you to avoid hurting your feelings when sometimes straight talking would be far more beneficial.
“I have been a designer for most of my working life, everything from theatre sets to garden and interior design, so I am used to working freelance. But I did do a FÁS business feasibility course just before I set up Planet Purple Kids which was a great help, as it gave me time to research properly the area of the market I was planning to enter, along with generally upskilling me in tax, costing and company regulations.
“Running your own thing is absolutely not for everyone. It is not to be recommended to anyone who lacks inventiveness, and who would feel unable to make firm decisions on their own.
“Being a bit of a dictator does no harm. Women who manage both a career and a family have my greatest respect. I hope Ireland can get back some pride in itself again, but if it does, it will come from the hard working people at the bottom of the pile and not our so-called leaders.
“Be prepared to reinvent yourself as often as needed, the marketplace is constantly changing, and to survive you need to be aware of your customers needs almost before they are. I’m staying in Ireland, though sometimes on a grey day, I wonder if I was younger would I?”
Provides a managed lost and found service to clients in a diverse range of sectors including hotels, car hire companies, bus companies, airports, airlines, nightclubs, sports grounds and theatres.
Richard McGuinness.
Dublin.
“We’re very optimistic about our plans for 2011. We feel the coming years will be all about how much value does your business deliver to its customer base.
“Our company delivers value on two fronts. We help our client companies reduce costs and improve customer service and massively increase the number of property owners who get their lost stuff back.
“We only opened in July 2010 so recession or not, first- year headaches came thick and fast. What was a surprise was the goodwill we received when we set up. We’ve had a huge amount of support. It’s as though people and companies are willing us to be a success and hoping we can buck the trend of 2010.
“Whether you’re in a start-up or an established company, in the current climate you’ve got to have faith in your ability to succeed. Setting up a business is not something you should do alone — having a team of people who are 100% behind you helps enormously.
“Both myself and Barry, our technical director, are very lucky to have understanding wives who haven’t filed for divorce in spite of it becoming an obsession in the past six months.
“Also, having a family who are willing to roll up their sleeves and help has been fantastic. I genuinely couldn’t have done it without them. I took advantage of some of the one-day courses on offer with the Dublin City Enterprise board which helped me focus on specific skills. My background was in telecoms, so it’s quite a jump to be looking after countless items of lost property.
“Setting up as your own boss can be a fairly scary thing to do and I certainly wouldn’t recommend it if you’re risk averse. But I felt the real risk was in not trying and wondering later in life ‘what would have happened if I’d followed that hunch’? Sometimes you’ve just got to roll the dice.
“I firmly believe Ireland’s economy will rise again if we all commit to supporting indigenous enterprise. As an example, we were helped by Brendan Palmer, chief executive of Electronic Recycling who offered us free mentoring, plus office and warehouse space for six months to help get us off the ground. This support from an established business accelerated our growth and kept costs low at the start-up point.
“I would love to see this type of initiative — established companies who can offer ‘grandfathering’ support to startups – being replicated across Ireland.
“This approach can help bring Ireland back to economic health. The single most important lesson I’ve learned about running your own business is: ask for help.
“It’s impossible to be a master of all trades and it’s much smarter to ask for help.”
Educational toys designed to enhance children’s motor and kinaesthetic development, including games, puzzles science kits and crafts that can be used at home or in school.
Kelvin Daly
Kilkenny
“I am optimistic for 2011. However, I am aware these are challenging economic times we are all living in. Starting a new business is always going to be challenging and starting a business in a recession brings added challenges. For example, the accessibility of credit from the banks has been extremely difficult.
“Having self confidence in my abilities is more important now than ever before. In the current economic climate I need to constantly look at ways of growing my business and work hard at making EDUthink toys a success. Simply put, I could not have achieved what I have without my family, the encouragement and the brutal honesty at times that money could not buy.
“I attended the Kilkenny Enterprise Board’s Start Your Own Business course in spring of 2009, which I found helpful. Being your own boss can be lonely yes, but there are more good days than bad. I would agree that the entrepreneurial path is not for everybody, only time will tell if it is the right road for me. The fear of failure is a huge driver, if that is good or bad I don’t know. I do believe the Irish spirit can over come what we are all enduring.
“The sums of money that are mentioned on the radio every day for the last two years are so vast I can’t comprehend how big they are, but Ireland can overcome its present challenges. I know my strengths and weaknesses and I am not afraid to pass on responsibility to others where it falls into their area of expertise. I am committed to staying in Ireland, after all, what good is it if we all leave?”
Emma Higginson of Soma Media Productions. Picture: Valerie O’Sullivan
Digital service provider to business, arts and music industry, specialising in open source software to create web content, including videos, social network applications, flash animations and interactive marketing campaigns.
Emma Higginson.
Tralee.
“I’m very optimistic for 2011, we have spent the last year working hard, improving our service offerings, investing in equipment and our research has really paid off.
“We have a solid online profile built up and have figured out our market’s requirements and we are taking on higher profile accounts which should see a big growth in business in 2011.
“Last year was tough in that we had to finance the growth of the business mostly through personal funds as the banks don’t really provide finance anymore.
“This made it a slow process as opposed to getting a start-up loan and getting straight in there. However, it does mean that we have no debts.
“The recession has actually benefited us in that the market has changed and businesses have had to rethink their advertising approach and are turning to new media as a cost-effective alternative. The main thing that keeps me driven is having created my job myself — I love it. As a people, we need to aspire towards a change in our self perception, take responsibility for our own situations and reinstate our work ethic.
“The good times are over, but that doesn’t mean we should lose sight of our personal goals. I believe the recession has made people rethink what is important to them. I’m involved in the family joinery business which gave me great insight into the day-to-day running of a business, especially getting through the downturn in the construction sector.
“It’s not for everyone as self motivation is difficult, however more people should seriously consider investing their skills in a personal venture. The rewards are not as immediate as securing regular employment but once you become established, it’s a very satisfying feeling.
“Tom Crean’s story inspires me with his pure determination, inability to give up and his constant upbeat attitude. His good nature and work ethic is something we should all aspire to. Ireland’s recovery is going to take time, but we have great resources, an intelligent and skilled workforce and a beautiful country. I’d like to think that things can’t get much worse, but regardless there is a global market for web-based services which we intend to tackle in 2012.”
Twelve Sligo craft businesses have come together to create a brand and help promote tourism in the region. Spurred on by the current difficult economic climate, they have amalgamated marketing initiatives throughout the county towards a common goal.
Rachel Quinn.
Sligo.
“Traditionally crafts have done better in a recession than at other times.
“People are more aware about where their money is going and customers are now making sure that your product is made in Ireland and not imported. Last year was very tough as everybody is adapting to their new reality, but hopefully some of the insecurity might settle down and allow people to make plans and know where their going in the future.
“The Made In Sligo group was set up as a central marketing tool, and it is amazing what can be achieved when people work together. One thing that small businesses do not generally have are marketing budgets but together we are much stronger. This group has the backing of Sligo LEADER and the enterprise board which have been immensely supportive.
“You have to believe your business has a future and can succeed or you wouldn’t be able to work the long hours it takes to drive your business.
“Myself and my husband work in the business together and we work from home so work and family life are very much intertwined.
“My extended family is also very supportive and anything they can do to help is offered.
“I also did a start your own business course with the crafts council which was great as it was industry specific. I do think the entrepreneurial path is not for everybody, and you must be a hard worker as the hours are very long.
“Being self employed is also a very financially insecure place to be in so you have to learn to accept that as par for the course.
“It will take time for Irish people’s expectations to come down — success is not necessarily helicopters and several extravagant holidays a year.
“Success can be about simpler things like being able to provide for your family, having a roof over your head and being able to go to the beach for a picnic. Being in business is a constant learning curve, and you must adapt as things change.”
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