Business Innovation and Growth: Tax Incentives and Sources of Funding

Innovative businesses, particularly small and medium-sized enterprises (SMEs) are a cornerstone of the Irish economy and a key strength in its continued growth. Innovation is a fundamental factor in an SME’s development, from the investigation of an idea through to its commercialisation, and innovation continues as the business evolves through its lifecycle to growth and maturity.

There are significant direct tax and funding supports available in Ireland to encourage innovation and business growth. This book provides a roadmap to these supports and incentives for undertaking and planning innovation, and at all stages of the business lifecycle. Business Innovation and Growth: Tax Incentives and Sources of Funding explores today’s funding landscape for SMEs, considering equity and debt finance options, government funding and supports, and other, relatively new funding sources such as peer-to-peer lending and crowdfunding. Additionally, the book advises on how to get 'investor-ready' by preparing to plan, apply for and secure investment.

Written in a clear and accessible style with the use of examples and case studies based on the authors’ extensive experience, this book is aimed at business owners or the finance team within companies that are seeking to ensure all funding sources and supports are availed of, or considered by SMEs. A must read for business owners and their advisors, it includes valuable advice on funding SMEs from the perspective of an entrepreneur (Justin Keatinge, Co-founder of Version 1), a banker (Andrew Graham, Director Corporate Banking, Bank of Ireland) and a later-stage funder (Orla O’Gorman, Head of Equity Listing Ireland, Euronext).

Contents

PART 1: TAXATION SUPPORTS FOR INNOVATION AND GROWTH

1. Startup Refunds for Entrepreneurs
2. The Employment and Investment Incentive Scheme
3. The Research and Development Tax Credit
4. Start-up Companies Relief
5. The Knowledge Development Box
6. Specified Intangible Asset Allowances
7. The Holding Company Regime
8. Revised Entrepreneur Relief
9. Retirement Relief

PART II: SOURCES OF FUNDING FOR INNOVATION AND GROWTH

10. The Changing Landscape of SME Funding in Ireland
11. Equity Capital (Funding Pillar 1)
12. Debit Finance (Funding Pillar 2)
13. Government Funding and Supports (Funding Pillar 3)
14. Other Possible Funding Sources (Funding Pillar 4)
15. The Ideal Debt-to-equity Funding Mix: Views of an SME Founder, Banker and Later-stage Funder

PART III: GETTING INVESTOR-READY

16. Business Planning for Growth
17. Investor Pitching
18. The Dos and Don’ts of Raising Funding: A Summary

Appendix A: Revenue Opinion on Trading Status of Certain Intellectual Property Activities

Click here to download the full table of contents.

Format: Paperback, 392 pages
Published: November 2018

For further information, contact publishing@charteredaccountants.ie or telephone on (+353) 1 637 7204

The Authors

Andrew Bourg BAAF, FCA is Corporate Investment Partner at BDO Ireland and responsible for the investment and management of the BDO Development Capital Fund, a €75 million fund supporting companies to accelerate their international expansion. As Director of BES Management DAC, a joint venture between BDO and Davy, he has assisted in investing and divesting over €175 million in growing and expanding companies. Andrew has extensive sectoral experience and expertise across a range of Irish industries, particularly in advising companies on scaling and funding international growth.

Derek Henry BAAF, MBS, FCA, AITI, Dip. Legal is a Tax Partner at BDO Ireland, which he joined from Ernst & Young in 2006. He has over 16 years’ experience in corporation tax, specialising in the R&D Tax Credit regime and, more recently, the Knowledge Development Box. Derek heads up BDO’s expert R&D Tax Credit team of engineers and accountants, with clients ranging from large multinationals to indigenous Irish businesses in growth-focused sectors, including ICT, pharma, medical technology and agri-food. Derek is a member of the CCAB-I Tax Committee, the Revenue R&D Discussion Group and the Revenue TALC BEPS Implementation Forum.