Local Authorities Members Association Autumn Seminar
Delivering Local Enterprise Development Jerry Moloney Regional Director – Mid West Region Micro Enterprise & Small Business Division Manager Client Skills Unit October 12th 2013
Outline of Presentation • • • • • • •
Overview of Enterprise Ireland Exports & Jobs How do we support our Client Companies Where is the Irish Economy now? Support for Start-Ups Working locally with LEO’s Questions
Irish Owned enterprise
World-Class Research
Policy analysis and advice
Inward Investment
Enterprise Ireland •
Enterprise Ireland partners with entrepreneurs, Irish businesses, and the research and investment communities to develop Ireland’s international trade, innovation, leadership and competitiveness
•
The ultimate objective is increased exports, employment and prosperity in Ireland.
Who we work with… High Potential Start-up’s Entrepreneurs starting companies with an ability to compete in world markets
Scaling Ambitious co’s with the ability to scale & achieve significant success
Established SME’s
Multinationals
Manufacturing & Internationally Traded services companies employing ten or more
Irish-based food and natural resource companies that are overseas owned or controlled
Potential Exporters
Research Community
Established SME’s currently focussed on the domestic market who have the ambition to export
Developing links with Irish enterprise, MNCs to support research collaboration, commercialisation of publicly funded research, and access to FP7, ESA
Client Exports reached record levels in 2012 17
16.20
16
15.20
15
14.28
â‚Ź billion
14
13.18
12.90
13 11.78
12 11
13.93
10.73 10.16
10.17
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
10.2
10.2
10.7
11.8
13.2
14.3
12.9
13.9
15.2
16.0
10 9 8 Series1
Year Source: Enterprise Ireland Annual Reports; 2003-2011, 2012 Forecast
Growing Globally, Impacting Locally
Highlights 2012‌
How Do We Support Our Client Companies •
Fostering Entrepreneurship and the creation of new Start-Up Companies
•
Promoting Innovation, Commercialisation and Research and Development
•
Building capability through Management Development and Training
•
Driving Export Sales and Partnering around the World
•
Providing Direct Finance and access to Finance
FOSTERING ENTREPRENEURSHIP AND THE CREATION OF START-UP COMPANIES •
Community Enterprise Centres – over 100 in operation in every county in Ireland
•
21 Enterprise Ireland supported Campus Incubation Centres and 6 Specialist Bio Incubation Facilities
•
New Frontiers Programmes through the IOT Network
•
Working with the CEB network – 35
•
Business Innovation Centres (BICs) - 4
•
68 Entrepreneurship Programmes in 2013
•
Business Angels Network
•
3rd Level Student Enterprise Awards – Think outside the Box
•
Overseas Entrepreneurs Programme €10m fund
•
Regional Competitive Feasibility Fund
R&D Support Helping companies of all sizes to engage in Research and Innovation Technology Centres industry-led research in emerging technology sectors EU, FP7 and ESA access funding and research partners across Europe Technology Gateways collaborate in clusters of companies and access equipment and technology in Institutes of Technology Innovation Partnerships up to â‚Ź250,000 available for collaborative projects between companies and research teams in Higher Education The R&D Fund grants for inhouse R&D projects, small and large, and collaboration bonuses for company-to-company collaboration Innovation Vouchers â‚Ź5,000 for small companies to get innovative solutions to technical and business challenges
Leadership and Management Development
Accelerated Growth Engagement
International Sales & Partnering Market Research Intelligence
Business Accelerators
Buyer Introduction/ Evaluation
Messaging & Positioning
Bringing key buyers to Ireland
Building Reference Sites
Trade Fairs/Trade Missions
Networking Opportunities
Incubator Offices Business Support Centre
Introductions Third Party Services PR & Sales leads
Inward Technology Transfer
Trade Missions •
87 International events with over 1000 clients
•
18 Ministerial led Trade Missions
Exports – the route to growth “Ireland is very much open for business” A positive story: • Ireland is punching well above its weight globally • Indigenous exports in 2012 - the highest ever recorded and 2013 indications very positive • Calibre of our companies and management competence is far superior to 20 years ago • More Irish companies exporting to wider international markets than at any other time in the history of the State • More Irish companies engaging in R&D than ever before • A strong entrepreneurial culture with high volume of business start-ups • Support structure and environment amongst best available anywhere – EI largest VC in Europe in terms of no of investments made • Irish diaspora in key positions of influence; new diaspora will be educated in Ireland
Summary of Funding 2013 Start-Up Start-ups
EXPANSION Growing your Business &
Exploring New Opportunities
• HPSU Package • HPSU Feasibility Grant Including: - Business Accelerator - Trade Fairs • Mentor
SMEs
• Expansion & JEF • New Market Research • Graduate for Int. Growth • Going Global • Internationalisation • Strategic Consultancy
Large Companies • R&D project • Expansion Package • New Market Research • FP7 • Graduate for Int. Growth • Innovation Partnerships • Going Global • Internationalisation
• Mentor • Key Manager
• Lean Transform
PRODUCTIVITY
• Lean Start and Plus
Addressing Competitiveness
INNOVATION Developing New Ideas
• Business Process Improvement
• Lean Transform • Lean plus • Business Process Improvement
• Competitive Start Fund
• R&D project
• R&D project
• Innovation Vouchers (also Small companies)
• FP7
• FP7
• Innovation Partnerships
• Innovation Partnerships
•Innovation Partnerships
• Technical Feasibility
• Technical Feasibility
Constantly changing landscape New Initiatives 2011/2012
Competitive Start Fund €10m International Entrepreneur Fund Job Expansion Offer Going Global Fund Market Research Grants Lean Business Graduates 4 International Growth Leadership 4 Growth (CFOs) Education in Ireland Overseas Network Realignment
Potential Exporters Division New Frontiers Community Enterprise Business Development Leadership 4 Growth (Food) Food FDI Clustering Industry Ecosystems Joint Enterprise Ireland / IDA Ireland management working team Technology Centres Public Procurement
Ireland in World Rankings • • • • • • • • •
1st - Flexibility and adaptability of work force 1st - attitude to globalisation 1st - Investment incentives 1st - Corporate taxes that encourages entrepreneurial activity 3rd - Availability of skilled labour 4th - Labour productivity 9th - Ease of doing business 9th - Education system to meet needs of competitive economy 13th - Global innovation index
• Most globalised western economy
Sources – World Bank, IMD
Inward Investment • • • •
8 of the top 10 Global ICT companies 9 of the top 10 Global Pharmaceutical Companies 4 of the top 8 Global Financial Institutions 3 of the top 6 Global Gaming Companies
U.S investment into Ireland is greater than that made in Brazil, Russia, India and China combined. - Intel, Google, Facebook, Twitter, Yahoo, Microsoft, HP, IBM, Pfizer, Merck, GSK etc.
Positive Economic Signs
• • • • • • •
The economy is growing again – 2nd qtr. 2013 Government, Banks and Utilities securing funding at market rates Jobs are being created again – 34,000 in the last 12 months Unemployment rate down from 15.1% to 13.4% Services sector grew at the fastest rate in 6 years last month New export orders grew for the 25th consecutive month Property prices showing signs of recovery – planning applications up 37% on corresponding period last year
Support for Start-Ups • There are two key government agencies with a mandate to support start-up businesses. 1. The City and County Enterprise Boards (CEBs). Focus is to support micro enterprise employing up to 10 people. Start your own business training programmes Feasibility study grants Funding towards a business plan Mentoring
Purchasing Managers Index
September 2013
September 2013
Output: National versus Enterprise Ireland September 2012 – September 2013 65
60
Enterprise Ireland 55
Increasing
National
50
Decreasing 45
40
35
EI Output
National Output
Se p13
ug -1 3 A
-1 3 Ju l
-1 3 Ju n
M ay -1 3
pr -1 3 A
M ar -1 3
Fe b13
Ja n13
D ec -1 2
-1 2 N ov
-1 2 O ct
Se p-
12
30
New Export Orders: National versus Ent. Ireland September 2012 – September 2013 65
60
Enterprise Ireland 55
National Increasing
50
Decreasing 45
40
35
30 12 pe S
-1 ct O
2
2 -1 v o N
2 -1 ec D
3 -1 n Ja
1 bFe
3
EI New Exports
3 -1 ar M
A
-1 pr
3
-1 ay M
3
3 -1 n Ju
National New exports
l Ju
3 -1 A
3 -1 ug
Employment Trends: National versus Enterprise Ireland September 2012 – September 2013 65
60
Increasing 55
Enterprise Ireland National
50
Decreasing
45
40
35
EI Employment
National Employment
Se p13
ug -1 3 A
-1 3 Ju l
-1 3 Ju n
-1 3 M ay
pr -1 3 A
M ar -1 3
Fe b13
Ja n13
D ec -1 2
N ov -1 2
-1 2 O ct
Se p12
30
Support for Start-Ups • 2. Enterprise Ireland focuses on High Potential Start – Up Companies (HPSU’s) • Innovative companies that can:
Grow employment beyond 10 people Grow exports beyond €1m (within 3/4 year timeframe)
Competitive Regional Feasibility • • • • • •
Piloted in the South East – April 2012 €200k fund €25k (max) per project 15 projects supported Rolled out to all other regions during last year A number of similar projects planned for 2013
Very early stage…
• • • • • •
Supports early stage start-ups Competitive call 4 times per year Funding = €50k matched with €5K from companies 10% Equity Panel of Serial entrepreneurs select the winners 60 companies in 2012 [4 X 15]
New Frontiers Programme • National Entrepreneur Development Programme • Accelerate development and growth of innovative startups • Run in partnership with 13 Institutes of Technology • 6 month structured programme covering business development, finance, research, innovation, mentoring and networking • 800 applicants in 2012 • 150 accepted onto programme • 120 new start-ups • €15k stipend for 6 months • Investor ready business plan developed
HPSU Investment
Due Diligence - the Business Plan • Market Risks • Execution Risks • Financial Risks Level of EI funding depends on exports, jobs & cash need EI Investment is in equity [CCRPs] Minimum of matching external funding Average initial investment €250k
Funding For Start - Ups • EI has invested €325m as a limited partner in VC funds leveraging €1.2b from the Private Sector • Huge increase in Seed Funds since 2009
1 fund in 2009 - €30m 4 funds in 2012 - €124m • Business Angel Networks investing in Start-Ups and Early Stage Companies.
Government Decision on Supports to Micro Enterprise and Small Business • • • • •
• •
Action Plan for Jobs 2012 Dissolve the 35 County & City Enterprise Boards (CEBs) Establish in EI a new Micro Enterprise and Small Business Division Centre of Excellence Establish a network of Local Enterprise Offices (LEOs) within the Local Authority Offices to offer expanded support and assistance to all small enterprises Progression pathways to EI for high growth companies Existing CEB staff to be given the option of choosing EI or local authority as their employer
Centre of Excellence •
Consistent application of National Policy
•
Client pathway progression
•
Online support to business
•
Training and Knowledge Management
•
Culture and Brand Management
•
Corporate Governance and Compliance
Working locally with LEO’s • • • • • • • •
Work closely with LEO’s & City & Co Councils to foster economic development & grow employment – County Plan’s to be developed Primary target for funding will be on developing companies to export Every Manufacturing/ITS job leads to creation of another job in the economy Flexible approach to use of shared mentors EI & LEO for all clients Work with LEO’s to achieve greater effectiveness and efficiency in delivery of capability programmes e.g. Start your own business Continue to jointly develop enterprise culture in 2nd & 3rd level Monies in new LEO structure remain secure Budget distribution methodology remains as is currently
Working locally with LEO’s • Continue roll out of Innovation Vouchers • Continue to fund Business Development Managers in CEC’s • PED Unit is available to support companies with potential to export • Mentors & Advocates to work one to one with clients locally • Roll out of new competitive funding schemes aimed at youth, etc. • County Plans – should focus on how all parties can contribute to a positive business infrastructure