Speech by Minister for Finance Paschal Donohoe, at the EY Entrepreneur of the Year Awards

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Introduction

Good evening.

I am delighted to be here tonight, celebrating the best of Irish entrepreneurship. I would like to thank Frank O’Keeffe and the EY team, as well as Anne Heraty and the judging panel, for the invitation to speak to you all.

I would like to acknowledge the presence of my close colleague, the Minister for Public Expenditure and Reform, Michael McGrath TD.

These awards are an important milestone in the Irish business calendar, a time for us to recognise and celebrate the innovation and dedication of Irish entrepreneurs. While the evolving public health situation means that tonight’s event is smaller than originally planned, it is still so important that we make the time to celebrate the outstanding achievements of all of the entrepreneurs in this room and involved in this brilliant programme.

Over the 24 years that these awards have been running, we have seen many changes in the economic landscape in Ireland. We have seen indigenous success stories take their place on the world stage, we have seen multinational companies continue to value Ireland as a positive location in which to put down roots and invest, we have seen our society and our workforce become more equal and inclusive.

Context

The last quarter of a century has also seen economic difficulties and we meet here tonight at a challenging time in both our economy and our society. I don’t need to tell you of the difficult times we’ve faced over the past 20 months, you’ve lived them.

The Covid-19 pandemic has taken its toll on each and everyone of us, albeit in different ways. We’ve seen the impact on our health service, our economy, our daily lives.

We will have to live with this disease for some time. However medical solutions will continue to advance and develop in response.

When the pandemic first reached our shores last March, some believed it would be years before an effective vaccination would be available.

Today over 90% of those aged over 12 are fully vaccinated and we are rolling out a national booster campaign to reinforce the protection those vaccines have given us. This has been, and will be again, a national success. I want to acknowledge the work of all of those involved in delivering the vaccine roll-out across 2021.

We are facing a number of other challenges around cost of energy and supply chain shortages, as well as labour market shortages in many areas. I firmly believe we will overcome these challenges and face a very positive future in 2022.

There are many learnings from our experiences in the recent past. Most notably the importance of being agile, of being able to react and adapt to change.

Nowhere has that been more apparent than in our business community. We have faced the unknown. We moved forward.

The Harvard Business School defines entrepreneurship as the pursuit of opportunity beyond resources controlled.

We can see that pursuit of opportunity apparent in each of the finalists tonight, who have pursued opportunities with a determination and a dogged resilience. Seeking out new customers, new markets, new worlds to conquer.

That pursuit of opportunity needs commitment and leadership. The sort of leadership that each of you have demonstrated in establishing and growing your businesses and the sort of leadership that will ensure ongoing and future success.

Future outlook

Entrepreneurs and the wider business community will be central to our future economic recovery and growth. Businesses, such as the ones in this room, are the backbone of our domestic economy, supporting tens of thousands of jobs across the country.

Each of you plays an essential role in our economic success, today and in the future. And this Government will play our part in helping to drive that success.

The role of Government in supporting the economy and society has been underlined due to the Covid pandemic. Through the Pandemic Unemployment Payment (PUP), the Employment Wage Subsidy Scheme (EWSS) and the Covid Restrictions Support Scheme (CRSS), approximately €17 ½ billion has been directed to individuals, families and businesses.

These supports were appropriate and effective. They worked in keeping businesses open and staff employed.

I have committed that there will be no cliff-edge to these supports. At the same time it is necessary to gradually unwind and phase out temporary emergency support measures.

That is why in Budget 2022, which I presented last month, I laid out the future path of EWSS, extending it in a graduated form to April 2022. This ensures that there is no sudden end and provides clarity to businesses. As the public health situation evolves, I will continue to keep this measure under review.

The recent Budget, as well as outlining the future of Covid supports, also contained a number of measures to support entrepreneurs. Measures which were developed in collaboration with industry, and in consultation with those at the coal face.

The Employment Investment Incentive (EII) scheme, a driver of investment in early stage companies and high-potential start-ups, has been extended. In addition, a number of improvements were made to ensure this scheme delivers on its full potential, to the ultimate benefit of companies in their start-up years and to the economy through job creation. I am confident these changes will mean greater investment in early stage enterprises.

Through Enterprise Ireland, Government has committed a further €30 million to the Innovation Equity Fund which has a mandate to invest in domestic, high innovation enterprises. This funding commitment will be matched by €30 million from the European Investment Fund, subject to Board approval.

In addition, the Ireland Strategic Investment Fund expects to participate with €30 million as a co-investor, leading to potential investments of up to €90 million for predominantly seed stage Irish SMEs.

We know that start-up companies face many obstacles in the early years and need particular support during this stage to grow and create jobs. That is why we have extended the Section 486C corporation tax relief for certain start-up companies to the end of 2026. This will provide greater certainty to recently established companies, and to those seeking to commence as we recover from the pandemic.

Conclusion

The focus of Government over the last year and a half was giving businesses the best chance to weather the pandemic, supporting their owners and preserving jobs.

Next year will make more progress. We will achieve even more for ourselves, for each other and for our country.

We should be positive about what lies ahead.

Each of you has been ‘unstoppable’ in your pursuit of opportunities. You have embraced change and overcome obstacles.

I congratulate you on your success so far and I wish you every continued success for the future.

Thank you