Mr. Hugh Kelly:

The Irish Exporters Association is the independent representative body for all Irish exporters. We offer practical help and support to Irish exporters under the following three main pillars: acting as the voice of the Irish export industry; providing practical knowledge; and connecting Irish exporters. We represent the whole spectrum of companies within the export industry, from indigenous SMEs to global multinational companies.

There is no sustainable employment without business and there is no business without the entrepreneur. It is the contention of the Irish Exporters Association that if we want to build a stronger indigenous economy, we need to foster greater entrepreneurship in Ireland. To encourage an entrepreneurial culture, we must acknowledge and reward the risk takers who have the ability and courage to step away from secure employment to become Ireland’s next entrepreneurs and future employers. These are individuals who are willing to invest their experience and energy in new ventures that offer many possibilities, including the very real possibility of failure. They are men and women who offer to risk their savings and, very often, mental and physical well being to venture outside their comfort zones in the hope of achieving something exceptional. Individual success inevitably leads to wider benefits for communities and the country. It generates employment and higher taxes for the Exchequer and delivers to those who might otherwise be unemployed a strong message that society needs and values them, too. The benefits of entrepreneurship are far reaching.

Most entrepreneurs are not solely motivated by money. If they were, we would have to characterise many Irish entrepreneurs as unsuccessful compared to their peers in the established corporate world. Among other things, entrepreneurs are motivated by the challenge and desire to make a difference, reach their full potential, provide employment, serve a happy customer and contribute to their community.

However, entrepreneurs have families and responsibilities and, like the rest of society, must eat, pay medical bills, house and educate their children and plan for their retirement. Starting a business carries significant risk to the individual. If the Government shares our belief in the importance and value of entrepreneurs and is genuine when it says it wishes to foster entrepreneurship, why does it support policies that fail to acknowledge those risks? Current policies send a very clear message to would-be entrepreneurs, and it is not always one of encouragement, support or appreciation.

In addition to all the inherent challenges to be faced in starting a business, entrepreneurs continue to be refused a PAYE tax credit. If they succeed, their marginal tax rate is 3% higher than that of the rest of society and they must pay capital gains tax of 33% if they try to realise gains. Our tax legislation encourages families to sell out rather than keep building on through the generations. If entrepreneurs' businesses stumble, they carry the full cost of redundancies, despite paying hefty employer PRSI contributions, and are provided with no safety net from social welfare.

If legislators really want to deliver sustained economic growth, higher exports and lower unemployment, they need to show, not just tell, our entrepreneurs, risk takers, business owners and employers that their efforts are truly appreciated and valued. The penalties suffered for being an entrepreneur and an employer in Ireland are not only unjust but dangerously undermine one of the very important foundations of wider economic development. These issues affect all entrepreneurs. I will hand over to my colleague, Nicola Byrne, who will talk about how these and other challenges affect female entrepreneurship in particular.