Empey highlights start up equity capital gap

Minister for Enterprise, Trade and Investment Sir Reg Empey has highlighted innovation and entrepreneurship as the "building blocks of Northern Ireland’s new economic framework".

However, the Minister warned: "Research has shown there is a gap in equity finance for people with bright ideas and for early start-up projects".

Speaking at the Conference dinner held on Wednesday evening for business people, financiers and venture capitalists attending the first Private Equity Conference hosted by InterTradeIreland, Sir Reg said: "The level of venture capital activity in Northern Ireland needs a fourfold increase if it is to match levels of funding in the rest of the UK.

"Raising awareness and stimulating demand for private equity, particularly amongst traditional sectors and early stage business, is therefore a priority for the new economic development agency, Invest NI.

"Accelerating the development of private equity and encouraging entrepreneurs to recognise the potential of venture capital backing in the creation of successful business, is an important element in helping Northern Ireland become a modern economy."

The theme of the conference ‘Venture Capital – an Interactive and Island Perspective’ is one of the key messages that InterTradeIreland’s Equity Network hopes to convey, to help promote greater understanding of the issues which are local to Northern Ireland, and to encourage key players think internationally.

Sir Reg said: "The success of many of our local entrepreneurs and role models has illustrated what can be achieved when we look beyond the shores of Northern Ireland.

"To support those prepared to take risks, Northern Ireland must build up its own clusters of competing venture capital funds, offering a wide range of skills and sectoral expertise.

"The signs are good, so we must act now. It is time to catch up with the rest of the UK and the Republic of Ireland and create a demand for outside equity as public sector funds recede."

InterTradeIreland, the Trade and Business development body, is one of six cross-border Implementation Bodies established under the March 1999 Agreement between the United Kingdom and Irish Governments.

The organisation's fundamental aim is to assist the development of trade and business in both economies in a cross-border context.

(SP)