In Budget 2022, a major stumbling block for domestic SMEs and entrepreneurs is finally addressed.
The Employment Investment Incentive Scheme (EIIS) will be extended for three years and will be amended to make it more attractive to investors, Finance Minister Paschal Donohoe, TD, announced in Budget 2022.
As part of reform measures, the scheme will be opened up to a wider range of investment funds.
“Now is the time to build an equity culture in Ireland, allowing early stage investment in private businesses to become an attractive asset class for not only institutions but individuals as well”
The decision has been welcomed by investors, including the Irish Venture Capital Association as a boost for investment into domestic, innovative SMEs.
Establishing an equity culture
It also welcomed a further €30m commitment to the innovative equity fund announced in Budget 2021.
“With pending changes in taxation of multinationals in Ireland, now is a highly appropriate time to review measures to create the right environment for indigenous, innovative companies which have the potential to become global players,” commented Nicola McClafferty, chairperson, IVCA.
“Beyond the EIIS, the association looks forward to further positive engagement with the Government with a view to unlocking far greater asset allocation from institutional investors into Ireland’s indigenous, high-growth SMEs.
“Now is the time to build an equity culture in Ireland, allowing early stage investment in private businesses to become an attractive asset class for not only institutions but individuals as well,” McClafferty said.