Caught in the middle of a rapidly changing world order with intense competition coming from east and west, Europe faces a tough challenge shaking off the ‘old world’ tag and staying relevant as a global economic power.
To its credit, this is a challenge the EU recognises and one it is taking proactive steps to address. The latest move is the launch of the EU Startup and Scaleup Strategy, which aims to increase the continent’s competitiveness as a global hub for innovation through a wide-ranging programme of support for entrepreneurs, start-ups and small businesses with ambitious growth plans.
So what exactly are the support measures included in the strategy, who are they for, and how can Irish entrepreneurs take advantage?
Tackling small business challenges
On the broadest level, the strategy is designed to help start-ups and small businesses navigate the common challenges they face out in the wilds of open markets, such as fragmented regulations, limited access to finance, and difficulties in scaling operations. The strategy therefore aims to provide targeted support in five areas:
- Creating a more innovation-friendly environment: This includes reiterating the EU’s commitment to reducing bureaucratic hurdles and making it easier to start and grow a business within the EU. Â
- Improving access to finance: The EU has pledged new funding mechanisms to bridge the gap between early-stage startups and scaleups, and is also creating more start-up friendly routes to existing funding sources.Â
- Enhancing market uptake for start-ups: This includes a new ‘lab-to-unicorn’ scheme.Â
- Talent development: The strategy aims to help small businesses create better pathways to attract and retain the best talent.Â
- Facilitating access to infrastructure, networks and services: This covers measures encouraging more collaboration between startups, research institutions, and larger corporations.Â
Financial opportunities for Irish entrepreneurs
While all of the above measures are welcome, the ones that will get the most attention from business owners are undoubtedly those related to finance. The strategy outlines plans for two new funding initiatives, the Scaleup Europe Fund and the European Innovation Investment Pact.
The Scaleup Europe Fund is a public-private investment initiative expected to exceed €10 billion. This fund aims to support promising tech startups, particularly in areas like AI, green/clean tech and nuclear energy, quantum computing, security and defence.
The European Innovation Investment Pact, meanwhile, aims to encourage institutional investors to commit a portion of their assets to EU-based venture capital and unlisted start-ups.
These funding schemes are in addition to existing pathways such as the Horizon Europe Programme, the EU’s flagship research and innovation programme with a budget of €95.5 billion, and European Innovation Council (EIC) Accelerator, which provides financial support to startups and SMEs with high-risk, high-impact innovations. The Accelerator offers grants of up to €2.5 million and equity investments up to €15 million, along with access to mentoring and networking opportunities.
How to access these opportunities
Your best first port of call for learning more about these opportunities is Enterprise Ireland. As the statutory body responsible for supporting Irish business, Enterprise Ireland has all the up-to-date knowledge you need about EU and other sources of funding for entrepreneurs, as well as the expertise to help you through application and tender processes.
Alternatively, if you would like a preliminary chat about your business plans and funding requirements, and would like to narrow down the best potential sources of finance before contacting the body, our team of financial advisors would be delighted to talk through your options.
