State policy ‘stymying potential of startups’ in Ireland

Government policy is preventing startups from achieving their full potential and hurting Dublin’s entrepreneurial landscape, according to the capital’s startup chief.

Dublin has a “great entrepreneurial ecosystem” in spite of a range of factors which are stunting progress, including in the areas of investment and taxation policy, according to Dublin Startup Commissioner Niamh Bushnell.

The Government needs to create an environment that encourages ordinary professionals to get involved in entrepreneurial activity to support the sector while “there’s a lot of work to do” in terms of taxation policies.

Britain’s more favourable capital gains tax and progressive research and development tax credit system pose concerns for the Irish startup scene, while PAYE workers are treated more favourably than entrepreneurs, Ms Bushnell said.

“With all of these things wrong, we’re still doing a great job but we need these [policy changes] for the potential to be maximised.”