Why do Multinational companies choose Ireland?

 

In Ireland, we facilitate 9 out of the 10 top software companies and the top 3 business software companies in the world. Out of the top 10 US technology companies, 9 of them are located here alongside 4 out of 5 top IT service companies. With a majority of the biggest players in the tech industry residing in Ireland we are left with the question of why Ireland? What does Ireland provide that other countries don’t? (Anon, 2021).

1.     Talent Pool

Ireland has a highly educated and skilled workforce for companies to choose from when employing. In Ireland 58% of 25–34-year-olds have attained a higher education; this figure is 17% above the EU average. Ireland was also ranked 1^st in the world for retaining and attracting talent, this is a great advantage to have for companies doing business here as the labor market is incredibly tight and competitive (O'Connell, 2022).

2.     Non- Existent language barrier

Following the events of Brexit, Ireland is now the only remaining country in Europe that’s first language is English. This creates ease for communications with employees but also with existing customers, especially for US companies looking to relocate. For example, if a company from the US relocates to France, although the French can speak English, it is not their first language, and this could create language barriers between the company and its customers and might disrupt business.

Corporation Tax

Ireland as of now, has the lowest corporation tax of 12.5% in Europe. This means that for any multinational company that resides in Ireland, their profits will only be taxed 12.5% in comparison to other countries, this saves them a lot of profits.

High Level of Support

The level of financial support from the Irish government to tech start up businesses is also a big factor why the industry is growing. Funding for venture capital for SMEs in Ireland increased by 34% alone in the third quarter of 2022 which equates to 309 million euro in that quarter alone and over 1 billion euro in 2022.

Infrastructure

The reason why Ireland is able to fund these start up tech labs is due to our country’s thriving economy. In 2022 Irelands GDP grew the most and the fastest in comparison to any other European country with a GDP growth of 12.2%.

Successful Regulatory Framework

Ireland has been the home base for many multinational companies for years and identifiably has a friendly regulatory framework for foreign companies with Dublin being a financial center to over 1000 global firms.

Access to European markets

If a company relocates to Ireland, it will gain access to the European market which will make it a lot easier to trade and operate with other European countries. These companies can reap the benefits of exporting goods to almost all markets in the world, Protection from markets such as Asia and Africa and ensuring no matter the good or service the company provides, there will always be a market for them.

Quality of Life

Although Ireland’s standard of living has increased and is certainly still expensive, it is still cheaper for companies and employees to operate in Ireland instead of the likes of London, LA, or New York. The quality of life in Ireland ranks higher than most countries with an average of 8.2/10 life satisfaction while the average is 6.6. This can be a great advantage for companies to use in arguments when trying to attain top global talent (Kanouse, 2022).

Pro-Business Culture

Ireland has been proven to be one of the best countries in the world to do business in and according to Forbes, Ireland always places high in the rankings and first in 2011 for their pro- business culture.

Mentoring and Support

Enterprise Ireland Provides mentoring, incubation programs, introductions to advisors and more. This is a great addition to the financial funding they offer to SMEs as previously discussed.

I believe the above points answer our initial question of why Ireland? It is now clear as to why Ireland is a great choice for multinational companies and tech companies to expand and relocate to Ireland. We have an incredibly educated and skilled workforce alongside low tax rates, excellent communications, global market opportunities etc.

Hopefully you found this blog insightful,

Jake.

 

References

Anon. (2021, Febuary 11). Why is Ireland the smart choice for tech companies? Retrieved from Ireland Spain Economic Association: https://isea.ie/why-is-ireland-the-smart-choice-for-tech-companies/

Kanouse, C. (2022, Febuary 17). Why Are Companies Moving to Ireland? Retrieved from course sidekick: https://www.coursesidekick.com/business/208396

O'Connell, S. (2022, November 24). Why Ireland is a great base for talent – and needs to remain so. Retrieved from The Irish Times: https://www.irishtimes.com/special-reports/2022/11/25/why-ireland-is-a-great-base-for-talent-and-needs-to-remain-so/#:~:text=Ireland%20was%20recently%20ranked%20first,a%20great%20advantage%20to%20have.