2014

Start-Up Ireland Business Case

Student Details removed for privacy reasons

Entrepreneurship Assignment

Project Title

Date Due

Submission Date

Lecturer

Declaration of Originality:We hereby certify that this material, which we now submit for assessment on the module Entrepreneurship, is entirely our own work, with the exception of where referenced in accordance with Dublin Institute of Technology’s regulations. In addition, we certify that it has not been submitted in whole or in part for assessment for any academic purpose other than in partial fulfilment for that stated above.

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Table of ContentsDeclaration of Originality;.....................................................................................................................1

Introduction...........................................................................................................................................3

About Tel Aviv....................................................................................................................................3

About Start-up Ireland.......................................................................................................................6

What are the services provided by Start-up Ireland?........................................................................6

Is there anything similar to Start-up Ireland in Israel?.......................................................................7

Current status........................................................................................................................................8

Stage of growth.................................................................................................................................8

Trends for both................................................................................................................................10

Organisations that support Start-ups in Ireland and Tel Aviv..........................................................11

What is missing in Ireland’s ecosystem that Start-up Ireland can fulfil?..........................................12

Competition.........................................................................................................................................13

Other organisations that have similar objectives?...........................................................................13

Does Start-up Ireland have a competitive advantage?....................................................................13

Value proposition................................................................................................................................16

What do you perceive the value proposition of Start-up Ireland to be?.........................................16

Other services that could be supplied in the future........................................................................17

Risks.....................................................................................................................................................18

What are the risks we take on by setting up Start-up Ireland?........................................................18

Milestones...........................................................................................................................................19

Identify 6 key milestones that Start-up Ireland must achieve over the next three years?..............20

False Indicators....................................................................................................................................21

False indicators of Irelands SME growth..........................................................................................21

Conclusion...........................................................................................................................................22

References...........................................................................................................................................23

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Introduction

According to Schumpeter (2014) an entrepreneur is someone who is an innovator, a person

that comes up with ideas and goes on to embody those ideas in high growth companies.

Schumpeter makes distinctions between replicative and innovative entrepreneurs. He also

distinguishes between small businesses and high growth businesses. Both sorts have an

important part to play in a successful economy. The author suggests most people try to

measure how entrepreneurial a society is by way of measuring the number of small

businesses, the number of people who are self-employed or the number of start-ups.

Throughout the course of this business case we shall compare Irish and Israeli start-up eco-

systems, and also capture the reasoning for initiating a project for start-up Ireland when

seeking to secure new partners or investors for the future (Schumpeter, 2014).

About Tel AvivAs a country, Israel may be only 60 years old and have a population of around 7 million but it

has the highest density of tech start-ups in the world. In 2009, 63 Israeli companies were

listed on the tech-orientated NASDAQ - which is more than Europe, Japan, Korea, India, and

China combined. Almost every major tech company today has some kind of subsidiary in

Israel, including Intel, Microsoft, Google and Cisco to name just a few. As a result, 39% of

Israeli high-tech employees work in the R&D departments of multinational companies. In

the Start-up Ecosystem Index, Tel Aviv ranks second globally, because it has the second

highest output index of start-ups with a healthy funnel of start-ups across the developmental

lifecycle, a highly developed funding ecosystem, a strong entrepreneurial culture, a vibrant

support ecosystem and a plentiful supply of talent.

When assessing as to why Israel and in particular Tel Aviv have become a start-up hot spot,

consideration must be giving to the following contributing factors as to why Israel is getting

it right when it comes to start-ups:

Networking: This is so engrained in Israel’s culture that it’s practically a reflex.

People aren’t secretive or protective of their connections, instead they are happy

to help others connect.

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Community: Unlike the hypercompetitive nature of the Irish start-up scene, Israel

has a more community focused culture. Part of the cohesiveness is due to the

shared religious upbringing of Israelis and the shared value of helping others in

need. They care deeply about improving their country and economy, and all

companies, non-profits, and government entities are closely intertwined.

Military Service: Girls graduating high school must serve at least two years in the

military. Boys do three. This reality causes teenagers to grow up a lot faster,

which helps them pay attention to problems that need solving. Young people are

required to work in teams, learn to lead, add value, and serve others.

Immigrants: Most of Israel is made up of immigrants or sons and daughters of

immigrants who are, by definition, risk-takers. They move from comfort and

familiarity to start a new, better life, and they have the desire to improve and

innovate. Since the country is so young, it can adapt and move a lot more quickly,

creating systems to improve the quality of life as they go (Nguyen, 2013).

According to co-founder and chief executive of a start-up called Wix, Avishai Abrahami, it is

the highly skilled workforce, particularly in software development. According to Avishai

Abrahami Israel is number one in engineers per capita - in terms of talent in programming, in

product, in marketing it is second only to Silicon Valley. An explosion of innovation in

Israel has led to the nation been dubbed the start-up nation. According to Jonathan Medved,

a Jerusalem based serial entrepreneur, Last year $2.2bn was invested in 650 Israeli start-ups,

that's more than all the venture capital money invested in European technology companies. It

is not just web firms where Israel is strong, it has plenty of world class technology in sectors

ranging from cybersecurity to clean energy (Schumpeter, 2014).

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Table 1: The Global Start-up Ecosystem Index. Source: Genome Report (2012).

As has been demonstrated and illustrated above, Israel and in particular Tel Aviv has many

contributing factors that allow for innovation and start-ups to evolve and grow. Some in

particular are unique to Israel and as such would be hard to replicate, where-as others such as

funding could be obtainable in certain circumstances in Ireland. A combination of well-

funded start-ups and a more cultural effort to pull together and share ideas contributes to

Israel’s capacity to produce numerous start-ups. These factors coupled with strong

universities, combined with the well-funded armed services, also help to fuel innovation thus

increase the likelihood of well educated, well-funded start-ups making the transition from the

incubation period to a fully-fledged start-up (Jones, 2014).

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About Start-up IrelandStart-up Ireland is a non-profit grass-root organisation which provides an independent focal

point for the Irish start-up community regionally, nationally, and internationally with the

objective of increasing the number of Irish start-ups that start and scale up successfully. The

leading source of job creation in Ireland comes from young companies starting up, growing

and innovating. Start-up Ireland believes that successful start-up ecosystems are created form

the ground up. They also believe that Ireland has natural advantages which can be exploited

to help lead the development of an international start-up location (Start-up, 2014).

In order to let the entrepreneurs lead this growth “Start-up Ireland Partnership” focuses on the

framework conditions that provide the most fruitful environment for start-ups. Start-up

Ireland’s ultimate goal is to help achieve Ireland’s entry into the world’s top 20 ranking of

start-up ecosystems. This will be achieved through working in partnership with the higher

education sectors, investors, mentors, service providers, Governments, large companies and

any others interested in growing Ireland’s start-up community (Start-up, 2014).

What are the services provided by Start-up Ireland? Start-up Ireland seeks to provide a focal point for the Irish start up community. They provide

a central location for entrepreneurs who can network, exchange ideas and seek guidance from

other experienced individuals. This exchange of information and networking community is

presently achieved through start-up Ireland’s presence on LinkedIn and Twitter where

various conservations about the start-up community take place day to day.

Start-up Ireland also has a website called “startupireland.ie” which provides newsletters,

contact information, a blog and various informational videos. Additionally, they have an

initiative called “Start-up Ireland Partnership”. This attempts to grow Ireland’s start-up

community by networking various locations around Ireland. These locations are linked to

their own webpage providing specific information for these start-up locations they include;

Dublin, Belfast, Cork, Limerick, Waterford and Derry. Finally, start-up Ireland provides a

webpage dedicated for entrepreneurs who are globally minded “startupirelandglobal.ie”

provides information for entrepreneurs looking to arrive and start up in Ireland, and also for

entrepreneurs looking to depart and set up outside of Ireland.

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Is there anything similar to Start-up Ireland in Israel? The following are a list companies which provide network hubs for entrepreneurs similar to

Start-up Ireland throughout Israel. Various activities take place such as training, meet-ups,

presentations, support and advice.

Hub Tel Aviv - A meeting and networking space.

The Library Tel Aviv - An entrepreneurship and innovation space.

Mezeh 9 - A centre for young adults to social and network.

H&H - A hotel with a unique workspace catered for entrepreneurs. It has a

conceptual outlook fostering that expresses its conceptual outlook by offering and

encouraging.

Hub Tel Aviv - Hub Tel Aviv is a home for entrepreneurs and free-lancers. It

operates a co-working space and various content programs including "Hub Rally" –

an accelerator for high impact ventures.

mindCET - An innovation centre dedicated for entrepreneurs, educators and

researchers to help them develop innovative ground breaking start-ups in Israel.

TechLoft - Offers entrepreneurs private offices, shared office space and a place to

network.

The Hive - Provides entrepreneurs with tools and mentoring to create and develop

their start-up in Israel.

Mapped in Israel - Provides free and easy access to data and reviews about the

Israeli high-tech ecosystem. (Open start-up, 2014).

The Israeli Government also provides support to entrepreneurs in the form of the below

mechanisms;

1. TNUFA - This support is intended for inventors, entrepreneurs and start-up

companies. This fund contributes towards establishing patents, the construction of

prototypes, preparation of a business plans and the mobilisation of initial capital.

2. Technological Incubators - These incubators provide a supportive framework for the

entrepreneur in the form of an independent company. This enables the entrepreneur

to translate a commercially viable idea into a product that will attract investors.

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3. Seed Fund - The program is based on the government matching an investment in a

start-up company, (similar to Enterprise Ireland) once the Government investment

is proportional to the investment of an investing entity. The Government also

provides option to the investor to purchase the Government shares in the start-up

company at the initial price.

Additionally, the Israeli Government set up several bodies and mechanisms to help foster and

support innovation. The most important of them is MATIMOP which is the executive

agency of the Office of the Chief Scientist (OCS) which provides the following;

Leverage the OCS for international research and development.

Search for partners abroad.

Promote technologies.

Identify suitable Israeli partners.

Develop strategic partnerships.

Israel’s technology and their start-up ecosystem has benefited immensely from government

and created global partnerships. These partnerships work to support rapid growth in Israeli

ingenuity on a global scale. Israel is ranked third in relation to the US’s innovation partner.

Ireland has no associations which such large economies that help foster innovation to the

same extent. The main difference is that Israel has a more cohesive ecosystem than Ireland at

this current time (Forbes, 2014).

Current status

Stage of growthWhen comparing Ireland to Israel there needs to be serious consideration giving as to how

Israel consistently produce high quality start-ups time after time. According to the start-up

Genome Project, Tel Aviv in Israel has been dubbed Silicon Wadi, which means valley in

Hebrew, as it has the number two start-up ecosystem in the world. It has more start- ups per

capita than anywhere else worldwide. This staggering statistic combined with the fact that

Israel has 61 companies on the NASDAQ which is more than Europe, Japan, Korea, and

China combined highlights why Israel is firmly in the teenage stage when it comes to start-

ups. According to the Genome Project Silicon Valley might be on its way out as the

dominant tech eco-system, with Silicon Wadi poised to take its place (Genome Report, 2012).

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The following statistics and financial numbers highlight reasons as to why Israel is at a far

more advanced stage of growth in relation to start-ups in Ireland, with some of the figures

involved been quite substantial.

In 2013: Average merger and acquisition deal size was $90 million, an increase of

48% from 2012.

The average initial public offering (IPO) was for $198 million.

The value of M&A’s set an eight-year high of $6.45 billion up 20% from 2012.

As of 2013 venture capital backed companies are on the rise with venture capital backed

companies raising $225 million in Q3 of 2013, up from $174 million the previous year. This

coupled with the fact that $137 million was invested in five deals in Q3 alone highlights that

in terms of start-ups Israel are in an elite group of nations when it comes to gauging how

mature their start-up eco-system is in relation to Irelands (Weintraub, 2014).

The start-up sector in Ireland is in the toddler stage of growth in our opinion. Currently the

following resources exist for many of the start-ups in Ireland. Whilst not an exhaustive list

these are the main points of contact when initiating a start-up in Ireland, thus pointing to the

fact there exists gaps in the market for scope to work upon for start-up Ireland.

Enterprise Ireland

Enterprise Boards

Revenue Commissioners

Dept. Enterprise Trade

BASIS

CRO

Citizens Information

Small Firms Association

IDA Ireland

Chambers of Commerce

NDRC

(Business-start-up.ie, 2014)

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Trends for bothThere are noticeable trends emerging in both eco-systems with both been at either end of the

spectrum a few key areas will be highlighted below.

Israel/Tel Aviv Eco-System

Trends in Structures

• Significant rise in high tech/life science incubators, accelerators, hubs and shared office space (e.g. Tech-loft, MESH etc.).

• Increase in start-ups incorporating in Delaware over Israel.

• Significant decline in funding from the Chief Scientist (OCS).

Trends in Financing Model

• Large merger and acquisition deals e.g. Waze and Trusteer. Highest rate since 1994.

• Valuations lower in Israel compared to Silicon Valley.

• Significant decline in venture lending, although increase for more mature companies.

• Significant increase in crowd funding e.g. Kick starter, Indiegogo and Our Crowd.

(Weintraub, 2014)

Irelands Eco-System

• There’s still a funding gap. The early stage funding is solved as you can get €50k

or €100k relatively easily, but there’s still a colossal gap between that and the first

€500k to 2 million euro investment.

• Irish start-ups still don’t really understand the cost of building a consumer

business. You have to figure about ten euro per user, and there is not the funding

structures in place to outperform competitors in Israel. A person in Israel is going

to raise money faster, and there going to outspend you in consumer acquisition.

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• It’s hard to be competitive in the Irish marketplace; you have to put your CEO

somewhere like Silicon Valley. For example, with Intercom, Eoghan McCabe

raised angel funding. He moved to the US, but the engineering team is here. It’s

a lot easier to sell to enterprise because they have more money to spend, and you

need fewer customers to make your targets.

• Many small businesses have difficulty getting credit. “Your Business Your Bank”

is a guide on getting funding for small and medium businesses. It includes

information on how to prepare a bank credit application. There still remains the

big issue of seed money and acquiring credit.

As can be seen by the emerging trends from both eco-systems, Israel and the associated

trends are largely positive and one would suspect continued effectiveness of start-ups

throughout the country, Ireland on the other hand highlights problems such as funding issues

and lack of awareness within the start-up arena. Although somewhat negative these trends

can be reversed by way of learning from successful eco-systems such as the Israeli model.

Imitation and implementation of their skills and capabilities should increase Ireland’s chances

of increasing the ability of start-ups to substantially flourish over the medium to long term.

Organisations that support Start-ups in Ireland and Tel Aviv In order to support enterprises in Ireland the Irish Government has set up a Government

website called Enterprise Ireland. This is responsible for the development and growth of

Irish enterprises in world markets. Enterprise Ireland helps business start-up, grow, innovate

and exploit opportunities in order to sustain and develop.

Their services include the flowing;

Funding and support for start-ups, business expansion plans, research and

development and business plans.

Export assistance in relation to the provision of in-market services, local market

information and assistance through their international office network.

Developing competitiveness by helping start-ups focus on leaner methodologies and

business practices in order to become competitive domestically and internationally.

Providing assistance with and incentivising in-company research and development.

Providing access to a network of overseas customers, from heads of Government to

end customers (Enterprise Ireland, 2014).

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Other help exists for start-ups in Ireland in relation to the following;

General citizen information (Citizens Information, 2014).

Legal structures (Business Regulation, 2014).

Business Planning (Enterprise Boards, 2014).

Funding (Microfinance Ireland, 2014; Small Business Finance, 2014).

Various other organisations exist which provide their members with advice and information

about running a business such as the Smalls Firms Association and the Irish Small and

Medium Enterprise Association (SFA, 2014; ISME, 2014).

What is missing in Ireland’s ecosystem that Start-up Ireland can fulfil?There is a wealth of knowledge, organisations, and government support available to start-up

businesses. The problem is there seems to be a lack of cohesiveness surrounding the

information. Start-up Ireland could present all the available information in a readily available

format allowing the user full visibility of business directions and available tools and support.

Start-up Ireland could provide a hub for venture capitalists and private investors to connect

with aspiring entrepreneurs. Start-up Ireland could provide areas throughout their site that

allows entrepreneurs to upload a brief synopsis of their business plan, upon which various

investors can compare and potentially choose to invest.

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Competition

Other organisations that have similar objectives? Apart from the following list of organisations and various government supports there seems

to be only one other organisation that offers a similar model to the one been offered by Start-

up Ireland.

Enterprise Ireland

Enterprise Boards

Dept. Enterprise Trade

Small Firms Association

IDA Ireland

NDRC

One company that offers similar services to Start-up Ireland is that of Start-ups.ie or Start-ups

Ireland. They have a comprehensive website with various aspects of how to start-up a

business within the site. They claim to be Ireland's leading independent, online resource for

anyone starting and growing a business. Established in 2005, they are the longest serving,

largest and most comprehensive advice platform covering everything you need to know start,

buy, run or sell a business.

Whether you're looking for inspiration to launch your own start-up, the latest insights into the

Tech Start-up scene or tips on how to manage your start-up they claim to have it covered.

This site was created by entrepreneurs to be a starting place for people interested in setting up

their own business, which would seem to be a very similar concept in relation to Start-up

Irelands own ideas and objectives hence we see these as their main competitor.

Does Start-up Ireland have a competitive advantage?We believe that Start-up Ireland do have competitive advantage over their rivals. Its main

advantage over Enterprise-Ireland and Start-ups Ireland is that they provide a grassroots

network hub for aspiring entrepreneurs. They attempt to span their eco-system from ground

level up connecting all major cities in Ireland. On the other hand Enterprise-Ireland seems to

concentrate more on established companies whilst Start-ups Ireland hone in on established

entrepreneurs.

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Applying the VRIN framework as outline by Barney (1991) you can determine if a resource

is a source of sustainable competitive advantage. To serve as a basis for sustainable

competitive advantage, resources must be;

Valuable: meaning that they must be a source of greater value, in terms of relative

costs and benefits, than similar resources in competing firms.

Rare: rareness implies that the resource must be rare in the sense that it is scarce

relative to demand for its use or what it produces.

Inimitable: it is difficult to imitate.

Non-substitutable: other different types of resources cannot be functional substitutes.

To get a better understanding of Start-up Irelands competitive advantage we will look at their

internal and external environment. By taking a look at Start-up Ireland’s VRIN attributes it

will allow us to understand their competitive advantages more clearly. Their VRIN attributes

are as follows:

Valuable; Commitment and hardworking workforce.

Rare; Customisation of individual needs for different entrepreneurs.

In-imitable; Grass root organisation.

Non-Substitutable; Linkages with big business, regionally, nationally and

internationally.

A problem with Barney’s (1991) methodologies is that it ignores the external environment

and the capacity to change. If we take a look at the SWOT Analysis we can get a better

overview of their external & internal environment. The SWOT analysis helps use to compare

the strengths, weaknesses, opportunities and threats which a company may face.

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The central purpose of a SWOT analysis is to identify the strategies to best exploit external

opportunities, counter threats, build on and protect company strengths, and eradicate

weaknesses (Jones & Hill, 2009). From the SWOT analysis it is quite clear that Start-up

Ireland has some unique selling points to focus upon and to create sustainable competitive

advantages from.

Start-up Ireland should try and create its competitive advantage by way of implementing one

of Porters generic strategies. With this in mind we feel they need to concentrate more so on a

differentiation strategy. Start-up Ireland must differentiate their organisation by developing a

service that offers unique attributes that are valued by its customers. These attributes include

the points which will be mentioned in the value proposition diagram and thus will give

competitive advantage within the start-up sector.

Start-up Ireland can achieve a differentiation strategy by executing their internal strengths

which we have highlighted from the SWOT analysis. If Start-up Ireland is to be successful

with their strategies they must ensure that they are able to tailor a broad range of service

development strengths to its customers. By implementation of this differentiation strategy

they can compete with the long established company already offering similar services namely

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Enterprise-IrelandStartups.ieConstantly changing environment/economies

More awareness/new entrepreneursStable economy/End of recession

Branding & awarenessLack of funds

Non-profitFocal pointHigh level of customisationCost-leaders

STRENGTHS WEAKNESSES

THREATSOPPORTUNITY

Start-ups Ireland. With Start-ups Ireland already having reached critical mass it is therefore

crucial that Start-up Ireland execute a differentiation strategy to compete and capture market

share.

Value proposition

What do you perceive the value proposition of Start-up Ireland to be?To get a better understanding of this question we will first look at what we perceive to be

Start-up Ireland’s value proposition in the following diagram.

From this diagram we get a clear indication of Start-up Ireland’s value propositions. Skok

(2013) describes a value proposition as a positioning statement that explains what an

organisation provides, who it is provided for and how it is uniquely provided. These are

questions all organisations will need to answer clearly, effectively and quickly from the

outset. Failure of organisations to achieve this can result in a firm missing there intended

target audiences, in the case of Start-up Ireland the target audience is the growing number of

business start-ups and emerging entrepreneurs in Ireland.

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Value Proposition

Grass-root organisation

Commitment

Hard working

Independant focal point

Regionally, nationally &

internationally

Non-Profit

Innovative serivce

Finally the already developed linkages that Start-up Ireland has in place can result in start-up

companies becoming more visible to potential customers. This can create a beneficial

competitive advantage over similar organisations which do not currently avail of the services

of Start-up Ireland. The organisation can also create linkages with local, national and

international associates who may be willing and able to use the provided communication

platforms, both on-line and off-line, to interact with potential investors or customers.

The organisation can also boast of the benefits it can supply through its close linkages with

the big business community and educational facilities which can provide great growth

potential for starting businesses. The overall value proposition of an integrated and

comprehensive network platform with a large multi-agency expertise ensures that customers

of Start-up Ireland can be assured that any internal inefficiency or skills gap may be easily

overcome.

Other services that could be supplied in the futureDuring the research carried out on this business case we could find very little information as

to areas of supports when a start-up fails. There seems to be little or no support in Ireland

when a start-up fails. It’s known that a very high degree of start-ups fail, and so there is a

huge opportunity for start-up rescuing or salvaging.

Throughout Ireland there are numerous incubators however there is a serious lack of a

recovery system for start-ups. Failing is a serious issue for start-ups with it having a lasting

effect on an entrepreneur. Entrepreneurs are on the rise in Ireland and as such losing them

due to them feeling there is no support, no help or no systems in place to recover could be

detrimental to this sector. Start-up Ireland could introduce some supports to assist when a

start-up fails, in turn this could encourage entrepreneurs who previously failed to begin again,

thus retaining users of the services provided by Start-up Ireland (Henry, 2014).

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Risks

What are the risks we take on by setting up Start-up Ireland?A depressed economy, uncertain market conditions and financial struggles all pose a

legitimate threat to the successful launch of a new company. Business owners must be able

to determine the types of risks that are most likely to affect their new venture and proactively

create risk management strategies that will enable the company to succeed despite the risks

(Scott, 2014).

Start-up Ireland faces a selection of risks that can evolve from a multitude of sources:

Funding - As outlined previous funding is critical to any new business venture. Start-

up Ireland although not for profit will require funding to continue in its operations.

Start-up Ireland can approach this issue in the same manner of any business entity and

seek investment from private sources. However, with it being a not for profit business

private funds may not be willing to invest considering there will be minimal potential

for returns.

Although government funding may be available to Start-up Ireland, choosing a

strategy that may rely too heavily on this type of funding source may relinquish the

independence of the organisation in the eyes of potential customers.

Operating on a multitude of on-line and off-line platforms gives the organisation a

unique attractiveness for advertisement companies looking to appeal to similar market

segments. Through its vast contacts in many diverse markets Start-up Ireland could

investigate the possibility of providing advertisement space to meet its funding

demands.

Market Conditions - Current market conditions and trends pose a risk to any new

businesses. Although there is currently a perceived growth in the number of new

business incorporations in the Irish market there is no proof that these businesses are

revenue generating start-up companies. It may be the case that these start-ups are just

a rebranding of original companies that may not need the assistance of Start-up

Ireland and may have enough expertise and network contacts already.

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Competition - Start-up Ireland as an organisation is still relatively new to the market in

which it operates. During our research into the entrepreneurial market and the start-

up market in Ireland we found that there is a need for more organisations such as

Start-up Ireland. Currently Start-up Ireland offers value to customers from its

platform and current linkages to business and educational sources. On analysis

however these offerings, although built up over time containing some personal

relationships, are currently being offered by a competitor called Start-ups Ireland.

With this in mind Start-up Ireland should now be considering strategic approaches to

penetrate the market more aggressively with a view to differentiating themselves from

the already existing competition.

Government policies and strategic initiatives - In order to increase the number of start-

up companies in Ireland, in a push to grow job creation, may result in a government

backed organisation becoming direct competition to Start-up Ireland. With the vast

linkages and funding available to this type of organisation it will be a formidable

competitor.

Failure - Start-up Ireland is an organisation similar to any other organisation in that it

is open to all the uncertainties and risks that come with starting a business. Currently

the organisation is only six months old and therefore is still in the growth segment

where business failure is at its highest. In our opinion the risk of failure is not as

critical as the risk of being associated with failure. It is widely recognised that up to

80% of business start-ups fail in the Irish market (Whelan, 2012). Start-up Ireland’s

organisation by design closely aligns itself with the start-up community; there is a

significant risk that it could be seen as a failure by association.

As outlined there is a variety of risks which Start-up Ireland may face in the future. The

organisation must clearly identify the risks and then strive to mitigate, control or eliminate

the risks where possible.

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Milestones

Identify 6 key milestones that Start-up Ireland must achieve over the next three years?

A milestone can be described as a significant point in the progression or development of an

organisation. It is important to have clearly identified milestones in order for the organisation

to strive unilaterally towards set goals. In Start-up Ireland’s case we suggest that the

following milestones should be strived for.

1. Increased awareness - Start-up Ireland has already clearly shown to have grown an

excellent diverse community already with 3600+ combined LinkedIn members and

4200+ Twitter followers in just six months (Killian, 2014). The organisation should

set a clear achievable milestone to reach a community of 20000+ in the next three

years. In our opinion this target is readily obtainable, as with most organisations

popularity and visibility will grow with the number of people who are aware of its

existence.

2. Stronger ties to third level education - The students of today are the entrepreneurs of

tomorrow so Start-up Ireland should set its milestone of visiting each relevant third

level institute at least once in the next three years. This links in closely with the first

milestone of increasing awareness but more critically will instil the organisation in to

the minds of the audience a young entrepreneurs at a very early point in their careers.

3. Failure assistance - As outlined previously there is insignificant assistance for start-ups

that fail in the Irish ecosystem. The creation of a platform where by failed

entrepreneurs can garner support and advice would be hugely beneficial. Start-up

Ireland should set a goal of developing a platform of this nature in the next three years

and in achieving this they could recycle the entrepreneurial spirit and vigour of failed

entrepreneurs back into the Irish ecosystem.

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4. Funding - For Start-up Ireland to remain sustainable they must achieve financial

stability. The financial problems that start-up company’s face is significant and this

will be no different for Start-up Ireland. A strategic decision should be made within

the organisation as to the preferred source of funding and over the next three years.

This should be achieved so that the organisational focus can be on the customer rather

than business funding activities.

5. Partnerships - Start-up Ireland should strive to increase the current number of industry

partners. A goal of increasing the current number of partners by a multiple of three

should be the goal for the organisation. This milestone will correlate closely with

other milestones mentioned but it also has the possibility to assist more start-ups to

scale higher and remain in business.

6. Competition - The area of competition should be focused on with a view to creating

sustainable competitive advantages over the next three years. Currently there is one

main competitor that offers almost the very same services and has the very same

objectives with almost the very same name. Over the coming years for Start-up

Ireland to establish itself they have to focus on differentiating themselves from this

main competitor.

False Indicators

False indicators of Irelands SME growthDuring the research conducted for this case our group have noted the perceived increase in

business start-ups in Ireland. The false indicators discussed, were the rebranding or re-

registering of a company will in statistics terms be noted as a new start-up, these false

indicators were widely noted. However one statistic that was outlined by Corcoran (2014) of

the comparative growth of 3.4% in the agricultural industry since 2008 we believe can also a

false indicator.

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During the research for this case study we spoke to one successful agricultural company in

North Count Dublin in regards this percentage growth and their opinions on its validity. The

findings of this research concluded that the perceived growth can be the result of current

agricultural institutes. This is due to them encouraging current or new employees to register

as self-employed entities to reduce the exposure of the institution, to tax and other

administrative costing associated with being a direct employer.

Conclusion

Start-up Ireland in our opinion is taking the right approach to develop and assist the start-up

ecosystem in Ireland. The next three years will be critical for the organisation, achieving

funding stability while also increasing the organisation visibility to potential customers is of

significant importance if the organisation is to remain viable. The entrepreneurial spirit is

alive and well in Ireland and it will be this spirit that helps to transform our economic

landscape for the better. No one alone has all the answers but by pooling of resources,

increased funding in innovation, and increased educational uptake in engineering and I.T.

Ireland could easily progress from the start-up stage of a toddler to a teenager within the short

to medium time frame. Using a combination of the right strategies and focused determination

Start-up Ireland will contribute significantly to the entrepreneurial landscape in future years.

22

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