Ireland, the most sought-after destination
Ireland is a country which a very sought after destination for establishment of business. The presence of big companies like Facebook, Google, LinkedIn, Indeed, IBM, and Microsoft etc. with many having their headquarters in Dublin is a testament to it having an environment which makes it an attractive destination for setting up business.
Many of the businesses wish to expand not just in their own local country but also beyond that. However, establishing a business in a foreign country is very challenging. and requires that many factors are taken into consideration like taxation rate, availability of skilled labor, does the country have business conducive environment etc .
The factors which make Ireland the most sought-after destination are: –
Lowest corporate tax rate: –
Many corporations are attracted to Ireland because of its low corporate taxation which is 12.5% which is very low (following Hungary which is 9%), when compared to many other countries for example: – France: 25%, Germany: 15.8%. It acts as an incentive and attracts many startups looking for the most cost-effective way to establish their businesses and attracting a lot of FDI.
Skilled Workforce: –
While low tax rates are one of the attractive elements, another one is the skilled workforce it offers. The digital world with advancement of ai, demands that people possess not just one skill or talent but are basically multi-talented. The Irish Education system is designed in a way which produces talented individuals possessing skills which are demanded by many multinational companies. According to a survey conducted by the Campus Advisor, Ireland was the fifth-highest-ranking country worldwide for higher education quality.
The value for its labor can be seen due to the presence of many big companies in Ireland like Facebook, Google, LinkedIn, indeed, IBM, and Microsoft which take advantage of rich skill pool available in Ireland.
Access to European single market: –
In a report published by Economist Intelligence Unit , 46% of respondents highlighted “access to EU markets” as the most important competitive advantage of doing business in Ireland. Ireland is so strategically located that gives a business access to a wider market of 742 million people. A market so big, which is filled with a lot of opportunities to tap into. The access to the European market helps businesses make entry into a very wide market which otherwise is a difficult path filled with a lot of regulations, language barriers, certain restriction, etc
BREXIT: –
UK’s exit from European union has had a greater impact on the world. This impact seems to have been positive for Ireland. Many big companies are shifting their headquarters from UK to Ireland. Many big companies like Barclays, Coinbase, Morgan Stanley, S&P Global etc. have shifted from UK to Ireland, trying to go for its already established financial center Dublin. The factors such low corporate taxation rate, rich pool of talented labor, access to European market, being last remaining proper English-speaking country and many other factors make it an attractive location for many businesses. As per a survey conducted by EY, many companies have chosen Dublin over Luxembourg or Paris, to establish or shift their businesses.
Conducive and Supportive Environment: –
The compliances in Ireland are said to be conducive to growth and innovation. The rules and regulations are based on common law principles, basically on which many countries have based their rules and regulations thus making the environment all the more familiar.
The Irish government has created a hospitable environment through many initiatives or programs. Some of them are Local Enterprise Offices (LEOs), the government offers financial aid, mentoring etc. Enterprise Ireland is a government agency that helps a company to develop and grow. It was established by the Industrial Development (Enterprise Ireland) Act 1998. Then there are these local enterprise offices, which offer a variety of services like conducting mentoring programs to get the business connected with seasoned practitioners, running training programs which help new businesses to start as well as help develop requisite skills of their employees, running programs encouraging entrepreneurship, etc.
Conclusion
Trends and statistics from the last two decades suggest that Ireland is an excellent place to start a business. The country’s location, conducive and supportive environment and especially UK’s exit from European Union makes it an ideal location for many startups. Also, The Irish market is booming with a lot of opportunities to tap into. Ireland is major hub for many tech and pharmaceuticals companies. All these factors basically offer what many entrepreneurs want, hence many businesses are attracted to it.
