EU Survey - Irish have the right attitude to entrepreneurship

The Director of the Small Firms Association, Avine McNally has said that the recent findings of an EU study on Entrepreneurship are very encouraging for future entrepreneurs. According to McNally, it is essential for Ireland to develop an entrepreneurial culture. 'There is never a good time to start a business, yet over 1,080 people a month in 2009 took the risk and set up a business in Ireland.'

The EU Survey looks at entrepreneurship and employment preferences across Europe and some of the other major world economies. 'Taking the plunge and starting a business can be risky and the survey shows that across Europe, Irish people are amongst the most willing to throw caution to the wind.  The survey shows that nearly half of Irish people (49%) would like to be self-employed or start their own business, this is higher than the EU average of 45%.'

'The reasons why Irish people would like to be self-employed are due to the personal independence, self fulfilment and the chance to work in an area they are really passionate about,' said McNally.

The survey highlights a series of positive attitudes towards entrepreneurship in Ireland:

*31% of those surveyed in Ireland who are employees felt that they could become their own boss in the next 5 years.
*23% of respondents in Ireland said that they were taking steps to start a new business or had done so, while a further 13% were thinking realistically about it. 
*78% of Irish people thought that good ideas were the most important aspect of a new business. 
*1 in 5 Irish people have a fear of bankruptcy due to setting up a business that may fail and 24% would have a fear of what would happen to their income.

McNally added: 'there are clear barriers to becoming an entrepreneur, these include the time and expense associated with the cost of compliance and regulation; the lack of management capability among entrepreneurs; difficulties regarding finance and access to credit and the current economic environment.'

'This survey shows that more people than ever want to be employers rather than employees. The overriding challenge for us is to give expression to these ideas and create more and more small businesses. Irish small businesses have always been a source of employment and a major vehicle for change.'

'Small businesses are both different and important. They are important because they create jobs. They are different because they are managed by people who take risks with their own money. There are tens of thousands of Irish adults seeking to start a business and we must ensure that everything possible is done to help these entrepreneurs achieve that goal,' said McNally.

For that to happen Ireland needs to develop a National Entrepreneurship Policy, which focuses on optimising the number of start up businesses, in particular on maximising the number of start ups aspiring to and achieving high growth. There should be specific initiatives which will embed and reinforce the strong entrepreneurial spirit in Ireland. The policy could build on three specific platforms: 

*Stimulating latent entrepreneurship potential, particularly among women and immigrant community;
*Reinforcing entrepreneurship in the education system; 
*Enhancing the culture of entrepreneurship.

In conclusion, McNally said 'while Ireland's overall entrepreneurial ranking is positive, a "fear of failure" is still relatively high among adults in Ireland. Entrepreneurial activity must be championed as an important component of our national ability to create wealth; as a way of encouraging innovation; and as an important mechanism for increasing economic growth.'