Ireland needs to increase the amount of capital it has available for young business ideas if it is to start and grow enterprises on an “unprecedented scale”, according to the draft report, in today’s Irish Times.
Business angels are successful business people who invest their surplus money in new ventures that they also give guidance to.
“Ireland’s business angel community for smart economy companies has remained relatively weak and does not seem to have operated to a significant degree as a mechanism to recycle the personal expertise and resources of previously successful innovators,” the report states.
However, with the collapse of the property sector, those with surplus funds are likely to be looking for new areas to invest in.
The report recommends a capital gains tax rate of 12.5 per cent for profits from “angel” capital investment, where it is reinvested in a new qualifying business. A qualifying business would be an innovative start-up company with export potential.
The report also recommends introduction of an “entrepreneurial tax credit” whereby the entrepreneur would get a period of tax relief on his or her salary if they established a company that led to certain levels of job creation.
SCK Group has successful business clients who would be willing to act as ‘business angels’ and invest their money in new business ventures.