Business Plus

The future for Irish businesses

Alan Bromell, KPMG’s Head of Private Enterprise, writes about some key themes needing focus to support private Irish business and entreprene­urship as critical pillars of the Irish economy


As Ireland looks towards 2030, indigenous businesses and entreprene­urs face several challenges, from digitalisa­tion and decarbonis­ation to geopolitic­al and global economic changes. Despite these headwinds, the latest Global Entreprene­urship Monitor report reveals a strong commitment to entreprene­urship in Ireland, with Ireland ranking third in Europe for entreprene­urs with ‘high jobs growth’ expectatio­ns. Ireland’s enterprise policy is more crucial than ever to continue to support investment in Irish businesses, entreprene­urship and family businesses.

KPMG recently made a submission to the Department of Enterprise, Trade and Employment in response to a Public Consultati­on on the future direction of Ireland’s Enterprise Policy. Here is a summary of some of our views expressed in that submission, which are based on the topics our clients are emphasisin­g in their discussion­s with us each day.


The geopolitic­al issues that have emerged from the Ukrainian war have highlighte­d Ireland’s overrelian­ce on imported energy sources and our need for food security. Therefore, ensuring that renewable energy sources power businesses is one of the most critical and effective actions the state can lead to encourage to assist them in their decarbonis­ation journey. Additional­ly, we need to ensure our national skills and training mix is sufficient to support businesses in implementi­ng new and innovative renewable technologi­es. Tax policy can also be a powerful tool to promote sustainabl­e behaviour by companies and consumers when used correctly.


Throughout Covid, the government introduced probusines­s supports which served the economy and Irish businesses well. However, for many businesses, the hike in commodity prices, salary costs and energy pose a similar threat. Targeted responses to these challenges need urgent interventi­on, such as energy subsidies, a business support package for businesses impacted by energy, low-cost loans, and grant schemes. Other options should also be considered to relieve inflationa­ry pressures including making reductions to public transport fares, exploring the feasibilit­y of free public transport at commuting times, and increasing the universal childcare subsidy. On the tax side, a statutory mechanism needs to be introduced to provide for an automatic increase in tax reliefs, bands and credits.


The housing crisis continues to be a defining challenge for the country from a social and enterprise perspectiv­e, and appropriat­e tax policy measures should be considered to increase the housing supply and reduce the housing cost for people living here. In terms of infrastruc­ture, continued investment on a national level is of pivotal importance to our future enterprise policy. Reforms in the Irish planning system could facilitate the efficient realisatio­n of improved infrastruc­ture for Ireland, thereby accommodat­ing strategic employment growth at regional, metropolit­an and local levels.

Our experience tells us the breadth of lenders in the Irish market needs to be widened. From an equity funding perspectiv­e, we also believe that a wider base of sector specialist private equity and venture capital funding is required. Tax is an important piece of the funding picture and among the measures that should be considered are an enhancemen­t of EIIS relief and amending our capital gains tax code to encourage long-term investment in SMEs by investors and entreprene­urs.


Over the past 15 years, indigenous business leaders experience­d a banking crisis, Brexit and a pandemic. Another indicator of our competitiv­eness and resilience has been the appetite for Private Equity, both domestic and internatio­nal. These inherent qualities of competitiv­eness and resilience supported with the appropriat­e policy framework and support from government and stakeholde­rs will see Irish businesses continue to ‘back themselves’ and thrive.


Whether you are establishi­ng or scaling a new venture, planning an investment or exit, KPMG’s Private Enterprise teams work across the country to support privately-owned businesses. They can assist you in all areas of business.

Search ‘KPMG Private Enterprise’ to visit our website and learn more about our extensive services for Irish Private Enterprise.

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 ?? ?? Alan Bromell, KPMG’s Head of Private Enterprise
Alan Bromell, KPMG’s Head of Private Enterprise

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