Access to finance and skilled talent are the key challenges facing Irish entrepreneurs according to the EY Entrepreneur Of The Year Entrepreneurship Barometer.
Talent and funding emerged neck-and-neck as the main challenges facing Ireland’s entrepreneurs, with 41 per cent of respondents naming skilled hire attraction as a major hurdle and a further 41 per cent citing a lack of finance options as inhibiting the growth of their businesses.
“It is vital for government, industry and academia to understand the specific challenges facing entrepreneurs and collaborate to solve problems, address legislative and cultural barriers to success, and together shape the future of entrepreneurship in Ireland” said Frank O’Keeffe, partner-in-charge of the EY Entrepreneur Of The Year.
Over one-in-two entrepreneurs surveyed (59%) believe the lack of finance options for start-ups was stifling the growth of new businesses in Ireland. While traditional funding such as business angels, private equity and venture capital remain limited for Irish start-ups, there is a higher demand for non-traditional funding, such as crowd-funding and microfinance.
Delving deeper into the area of talent attraction, 38 per cent cited specific challenges associated with attracting experienced hire, while an additional 24.4 per cent noted difficulties in sourcing both experienced hire and skilled graduates. While multinationals were seen as direct competitors in the race to hire the best talent, the Entrepreneurship Barometer findings also revealed a skills shortage, with a particular emphasis on the need to increase the pipeline of graduates with engineering, sales and programming skills.
The economic environment was specified by 33 per cent of respondents as a major challenge for today’s entrepreneurs. Specific issues included growing markets, global competition and a lack of consumer confidence.
Respondents also felt that a fear of failure proved to be a major barrier for budding entrepreneurs (37%), calling for a need to reframe failure as a step towards success. This includes government support in promoting entrepreneurs as crucial job creators, and educating people about entrepreneurship. Academia was also called on to offer support in highlighting local entrepreneurial success stories from school to university level in order to help students make informed career choices.
The majority of respondents (74%) believed that there was little support given to struggling and failed entrepreneurs, particularly in relation to social welfare support and policy. A call was made for government to create an infrastructure that shared available resources, guidance and supports to get struggling entrepreneurial businesses back on track.
The survey was based on feedback gathered from 350 of Ireland’s leading entrepreneurs, all of whom are previous EY Entrepreneur Of The Year finalists.
