West still strong for entrepreneurs

The West of Ireland is still excelling in producing and supporting entrepreneurs in many sectors but more could be done to support them, according to Forvis Mazars' Maurice Hickey. When it comes to innovative, flexible and agile life sciences companies, Galway has really come into its own in recent years, with many businesses leading the way with solutions for global issues such as the Covid-19 pandemic.

“From an entrepreneurship perspective, Galway is probably punching above its weight in a lot of ways,” said Maurice Hickey, audit and assurance partner, Forvis Mazars, Galway. “A lot of innovation hubs have been set up in recent years, many closely linked to the universities – we are lucky to have two excellent universities in the area, UCG and ATU. Galway has been traditionally very strong in the life sciences/medical technology space, and some of the technologies and innovations coming out of the West in this space are the envy of companies internationally, and a testament to the Galway ecosystem.”

There is also growth in sustainable energy and construction. “Renewables have become more prominent in the West,” says Hickey. “Given our location and the need across the country, there's a huge upside in that industry in the area over the coming years.

“There have been and will continue to be huge developments to the city's landscape, such as Crown Square and Bonham Quay; in addition to this, the need for housing has seen several big developments being built, both in Galway and elsewhere in the region. Given the housing challenges we face, there's a challenge in terms of the pace at which these projects are happening. This is all positive, but Hickey warns problems remain and these must be addressed to maintain progress.

“There are constant cost pressures in terms of inflation, particularly for SMEs, even if they have eased off slightly since their peak as we were coming out of Covid,” he says.

“The infrastructure issue is a problem, especially from a retail perspective, which makes living in and accessing the city affordable and convenient a challenge.

“In recent times, we've seen some challenges for family businesses in terms of succession planning, particularly for smaller SMEs. We've many family businesses that have been passed through generations coming to a natural end, maybe the attraction isn't there for younger generations to take over the family business anymore. The key is to ensure that the business is structured with a view to the future to allow them to be passed on in an efficient manner. The increase in the age group for qualifying individuals claiming retirement relief on capital gains tax from 65 to 70 in the recent Budget will help, but it is also a reflection of the challenges that business owners are facing in passing on a business from one generation to the next.”

There's a lot of chatter about government supports for indigenous businesses, but is the government going far enough? “I would argue not. There were some improvements in the latest Budget, such as reliefs on energy costs, but there are many challenges facing smaller businesses, such as the increase in minimum wage, as well as there not being a lot of visible support in terms of improving local infrastructure to the required level in the near future. People need a roof over their heads and to be able to get from A to B, and if you were picking holes in the Budget, you could say that there wasn't enough help with this.”

All of that said, there is plenty to be positive about when it comes to business in the West.

“There's a lot of good incentives for small start-ups, from government supports to local hubs, to help them really give it a go. From an investment perspective, you have schemes such as EIIS and CGT relief for angel investors to encourage people to invest in start-up businesses. The budget increase for the first-year payment threshold in the R&D tax credit from €50,000 to €75,000 will provide further cash flow support to start-ups undertaking R&D activities. This is an area the West excels in and will ensure that we continue to have companies in the region develop innovative and technologically advanced products and services. We've also been very successful in attracting FDI in Galway, with the likes of Medtronic, Boston Scientific, Abbott and larger Med Tech companies having their Irish base in Galway. A lot of really good people have gone through those companies and then gone on to set up their own enterprises, based on their experience.”

The strong business landscape in the West is reflected in the growth of companies like Forvis Mazars, whose Galway office has expanded rapidly to a team of over 100 people. “In Galway, we've been strongly aligned to the life sciences and pharmaceuticals industry in recent years and we have a local team that provides hands-on support to companies throughout their R&D tax credit journey,” says Hickey.

“We also operate as a national and international firm, so we have access to a huge amount of people and experience, a network of over 40,000 people globally. In Galway, we can provide a very tailored and niche service, developing close and longstanding relationships with these companies, but we also have access to this huge experience and can deliver on an international basis.”

You can view the article on The Business Post here.