'Credit's scarce, but it is a good time for start-ups'
Published 06/12/2012 | 17:00
JIM Hughes founded a company at the height of the Celtic Tiger with a single phoneline from a bedroom in a rented house.
Now, the IT firm Innovate, which he set up alongside Enda Cahill in 2005, has grown to employ nine people full-time.
The company, which is based in Gorey, Co Wexford, has a turnover of over €1.4m.
Jim (32) left a job in IT management and a six-figure salary to set up his own company. He believes it is now a great time to start a business.
"The Government has now reformed the three-year corporation tax relief for start-up companies to allow unused credits to be carried forward, which undoubtedly help SMEs and start-ups navigate their early years," he said.
However, he pointed out that access to credit was "more difficult than ever".
"Solid business plans are still gaining banking support, not understating the many painful difficulties," he said.
The businessman said the changes to the cash receipts basis threshold for VAT from €1m to €1.25m would help cash flow for SMEs.
Jim added that the doubling of the tax credit for R&D from €100,000 to €200,000 to encourage business expansion was a "visionary step" and would aid the "smart" indigenous firms.
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