PwC report highlights capital gaps, talent shortages and cautious mindset as key barriers to building global Irish multinationals.
Ireland’s ability to produce high-potential start-ups is widely recognised, but a new analysis from PwC Ireland argues that the country is failing to convert enough of those early successes into globally competitive, Irish-owned multinationals.
The report identifies a structural weakness at the centre of Ireland’s economic model, pointing to persistent barriers that prevent indigenous companies from scaling. PwC is calling for a co-ordinated national response, centred on what it describes as the “three Cs” of capital, capability and culture.
“Ireland is in a global race to scale its indigenous enterprises. The opportunity is clear, but so too is the threat if we do nothing”
David McGee, partner at Strategy within PwC Ireland, said the country’s long-standing reliance on foreign direct investment has delivered strong results, but a more balanced approach is now required.
“Ireland’s economic success has been significantly bolstered by foreign direct investment. Yet, to ensure long-term resilience, we need a new strategic approach to both nurture and retain Irish-owned multinationals, while also developing a strong indigenous sector that has ownership and decision-making rooted in Ireland,” he said.
He added that while Ireland’s start-up ecosystem continues to perform well, scaling those businesses remains the defining challenge.
“While Ireland excels at fostering start-ups thanks to a robust university sector, entrepreneurial spirit, and State support, the central challenge lies in scaling these companies into global players. A co-ordinated national approach is needed,” McGee said.
Capital gaps persist as firms struggle to fund growth
PwC’s analysis highlights a clear funding constraint, particularly for companies seeking to expand beyond early-stage growth.
Ireland’s domestic venture capital market remains relatively small, and fund sizes are often insufficient to support the larger investment rounds required for global expansion. As a result, many companies rely heavily on internal financing and show caution in taking on external investment or debt, leaving them undercapitalised at a critical stage.
The report notes that despite policy efforts, including State-backed scale-up funds and tax incentives, access to appropriate growth capital continues to lag behind international peers.
PwC points to alternative models abroad, such as Singapore’s use of sovereign-backed investment vehicles like Temasek, which has played a central role in scaling domestic enterprises. It suggests Ireland could expand the role of existing institutions such as the Ireland Strategic Investment Fund, deepen collaboration with the European Investment Bank, and better mobilise private and family-owned capital.
Skills shortages hamper scaling ambitions
Beyond funding, capability constraints are also weighing on companies with growth ambitions.
According to PwC’s 2026 Irish CEO Survey, 60% of business leaders report difficulties accessing key skills. The shortages are particularly evident at senior and specialist levels, where scaling firms often struggle to secure experienced leadership.
While existing initiatives have focused on strengthening the talent pipeline, including investment in education and enhancements to programmes like the Key Employee Engagement Programme (KEEP), PwC argues that further measures are needed to close these gaps.
Suggested actions include targeted visa programmes to attract international expertise and structured leadership development initiatives to build domestic capability.
Conservative mindset seen as a limiting factor
The report also identifies cultural barriers as a significant but often overlooked constraint on growth.
PwC finds that many Irish SMEs remain cautious in their approach to expansion and innovation. Only 14% of Irish CEOs report a high tolerance for risk in innovation projects, reflecting a broader tendency to prioritise stability over aggressive scaling.
This risk-averse mindset, according to the report, is not limited to individual companies but reflects wider societal attitudes towards entrepreneurship and success.
PwC argues that shifting this culture will be critical if Ireland is to produce more homegrown multinationals, framing the challenge as a national strategic priority.
A 10-point plan for long-term change
In response, PwC has outlined a 10-point multi-year plan aimed at addressing the structural barriers to scaling.
Among its key proposals is the establishment of a sovereign scale-up capital fund to bridge the gap in later-stage financing and reduce dependence on overseas investment.
The firm also calls for reform of capital gains tax and entrepreneur reliefs to encourage long-term ownership and reinvestment, alongside enhancements to employee ownership schemes to support talent attraction and retention.
Other recommendations include simplifying the tax system to ease administrative burdens, expanding incentives to retain headquarters and intellectual property in Ireland, and developing targeted visa programmes to strengthen the talent pipeline.
PwC also emphasises the importance of celebrating Irish-owned multinational success stories and leveraging the global Irish business network to support scaling companies.
A race for competitiveness
Colm O’Callaghan, Tax Partner at PwC Private, said the scale of the challenge requires sustained and co-ordinated action over several years.
“As Ireland seeks to remain competitive globally, tackling these structural challenges across capital, capability and culture will be essential to unlocking the next phase of business growth,” he said.
He warned that international competition for high-growth companies is intensifying, with other countries adopting increasingly ambitious policies to attract and retain domestic enterprises.
“Ireland is in a global race to scale its indigenous enterprises. The opportunity is clear, but so too is the threat if we do nothing. This needs urgent and decisive action, without which the next generation of Irish multinationals risk being built elsewhere,” O’Callaghan said.
PwC’s assessment presents a clear message that Ireland’s future economic resilience will depend not only on attracting global investment, but on enabling its own companies to grow into global leaders.
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