Written answers

Thursday, 15 October 2009

Department of Enterprise, Trade and Employment

Entrepreneurial Activity

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 120: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the entrepreneurial activity to date in 2009; the entrepreneurial activity for each of the past ten years; and if she will make a statement on the matter. [36537/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 121: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the breakdown of entrepreneurial activity in each county to date in 2009; the breakdown of entrepreneurial activity in each county for each of the past ten years; and if she will make a statement on the matter. [36538/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 122: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of entrepreneurial programmes which are run here; the number of entrepreneurial programmes which have been run in each of the past ten years; and if she will make a statement on the matter. [36539/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 123: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the agencies and bodies which run entrepreneurial programmes here; and if she will make a statement on the matter. [36540/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 120 to 123, inclusive, together. The statistical information sought by the Deputy in relation to entrepreneurial programmes and entrepreneurial activity is not compiled or available in the format sought for the periods mentioned. Details in relation to the range of initiatives available in Ireland to support entrepreneurship were published by Forfás in October 2007. The report, "Mapping of Initiatives to Support Entrepreneurship in Ireland", is available on the Forfás website at www.forfas.ie/media/forfas071023_entrepreneurship_initiatives.pdf. The report sets out an overview of entrepreneurship initiatives available in Ireland, many of which have been in operation for a number of years, including the Enterprise Education Initiatives in the primary, secondary and third level sectors; the Entrepreneurship Award Schemes supported by the education system and the business community; the initiatives for start-ups and training; as well as initiatives specifically for women and ethnic minorities administered by Government Departments and public sector bodies such as the Department of Social and Family Affairs; the Department of Justice, Equality and Law Reform; the 35 county and city enterprise boards; Enterprise Ireland; Shannon Development; FÁS; Údarás na Gaeltachta; the county enterprise funds; Teagasc; the business innovation centres; LEADER and the area partnerships. The majority of these initiatives continue to be provided.

The Irish Global Entrepreneurship Monitor report provides details of entrepreneurial activity and sets these findings in an international setting. The report has been published since 2001. The GEM report for 2008 is available on the Forfás website at www.forfas.ie/media/gem_report_2008.pdf. The report confirms that Ireland is an entrepreneurial nation and to the fore in Europe in its rate of early stage entrepreneurial activity (7.6%) and its rate of established entrepreneurs (9%) among the adult population. With an average of 2,800 individuals setting up new businesses every month, entrepreneurial activity in Ireland remains high. A breakdown for the period 2001 to 2008 is set out in the Table 1 that follows this reply.

Section 2 and Tables 2.1 to 2.10 of the 2008 Irish Global Entrepreneurship Monitor report set out details on entrepreneurship in the regions of Ireland. Entrepreneurial activity can also be considered in the context of company formations and new VAT registrations for businesses. Table 2 that follows this reply provides details of new company registrations. These figures cannot give a comprehensive overview of all new entrepreneurial activity, as entrepreneurs who do not use a limited company structure would not be included. Table 3 that follows this reply provides details of new VAT registrations. These figures cannot give a comprehensive overview of all new entrepreneurial activity as registration for VAT applies to specific turnover thresholds and entrepreneurs below such thresholds would not be required to register. The activities and programmes of the various State development agencies in providing services to enterprises can also be seen as an indication of entrepreneurial activity. The significant allocations made through my Department to such agencies, to assist new and developing enterprises, is evidence of the strength of our entrepreneurial spirit in Ireland.

I wish to explain some of the terms used in Table 1 that follows this reply. "Nascent entrepreneurs" are those actively planning a new venture. Such entrepreneurs have done something during the previous 12 months to help start a new business that he or she will at least part own. Activities such as organising the start-up team, looking for equipment, saving money for the start-up or writing a business plan would be considered as active commitments to starting a business. The rate given in the table for nascent entrepreneurs is the rate for those in the adult population aged 18-64 years inclusive. "New firm entrepreneurs" are entrepreneurs who at least part own and manage a new business that is between four and 42 months old and have not paid salaries for longer than this period. These new ventures are in the first 42 months after the new venture has been set up. The rate given in the table for new firm entrepreneurs is the rate for those in the adult population aged 18-64 years inclusive. The figures for "early stage entrepreneurs" refers to the total rate of early stage entrepreneurial activity among the adult population aged 18-64 years inclusive.

In some instances, this rate is less than the combined percentages for nascent and new firm entrepreneurs. This is because, in circumstances where respondents qualify as both nascent and new firm entrepreneurs, they are counted only once. In addition to those who are currently involved in the early-stages of a business, there are many individuals who have set up businesses they have continued to own and manage for a longer time. These individuals are referred to in the tables as "established business owners", using an index which captures the percentage of individuals in a population that have set up businesses that they have continued to own and manage and which has paid wages or salaries for more than 42 months. The rate given in the table for established business owners is the rate for those in the adult population aged 18-64 years inclusive.

Table 1: Entrepreneurial Activity GEM Reports

YEARNASCENT ENTREPRENEURS 1NEW FIRM ENTREPRENEURS 2EARLY STAGE ENTREPRENEURS 3ESTABLISHED FIRMENTREPRENEURS 4
20017.2%4.8%12.1%N/A
20025.7%4.2%9.1%8.1%
20035.1%3.8%8.1%6.7%
20044.4%3.6%7.7%6.5%
20055.7%4.7%9.8%8.1%
20064.5%2.9%7.4%7.8%
20074.2%4.2%8.2%9%
20083.3%4.3%7.6%9%

Table 2: Company Registrations

YearIncorporation Of New Companies
199918,761
200018,232
200114,345
200213,845
200314,388
200415,690
200517,302
200619,297
200718,797
200814,784
2009 (Jan-Sept)9,956

Source: CRO

Table 3: New VAT Registrations

YearNew VATRegistrations
200019,061
200125,472
200225,014
200328,501
200431,937
200535,842
200639,827
200733,757
200825,727

Source: Revenue Statistical Reports

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