Irish founders face funding and talent hurdles despite high confidence

A new report from Ibec, the group representing Irish business, reveals that while Founder confidence remains high, significant challenges in accessing funding and competing for talent are holding them back.

The annual Ibec Founders Report, based on research with over 70 founders, found that despite a largely positive outlook - with 77% of founders rating the current business environment positively and 68% feeling optimistic about the next six months- growth is being constrained. The top challenges identified were access to funding (27%) and competition on pay (37%). Administrative red tape was also cited as a key structural barrier.

Strong Growth and Ambition

Ireland's startup ecosystem continues to grow, supported by strong research institutions, incubators, and accelerators. The report notes that Ireland is now home to seven unicorns, and new startup creations increased by 9% in the first half of 2025 compared to the previous year. Founders’ growth ambitions are clear, with their top business priorities being:

• Accessing new markets (22%)
• Launching new products/services (21%)
• Fundraising (15%)

The report also found that 71% of founders struggle with their wellbeing and work-life balance.

Sharon Higgins, Ibec Executive Director, Membership & Sectors, said:

"Ireland has all the raw ingredients to be a global leader in high-growth, founder-led enterprise. Founders are already making a significant contribution- employing over 234,000 people and driving exports and inward investment. It's heartening to see continued capital flowing into our brightest startups, including venture capital investment in women-led startups growing by 39% to €200 million, but ambition alone is not enough.

We must continue to find ways to support our founders through targeted incentives, a streamlined R&D tax credit that rewards innovation, and a reduction in the regulatory burden. With the right support, Ireland's founders can build world-class businesses, create high-value jobs, and position our country as a global hub for entrepreneurship and innovation."

Ibec's Recommendations to Government

Based on the report's findings, Ibec has put forward the following recommendations to the government:

• Innovation: Increase public R&I investment, enhance the R&D Tax Credit, and support the early adoption of digital and AI technologies.
• Funding: Simplify grants and tax incentives, address the scaling finance gap, and improve access to EU funding and capital markets.
• Talent: Launch a national training voucher scheme, expand Skillnet funding, and improve access to critical future skills.