Irish startups remain upbeat about business prospects, but difficulties in securing funding and competing for talent are stifling growth, according to a new report from Ibec.
The business group’s annual Founders Report, based on research with more than 70 founders, found that while 77% view the current business environment positively and 68% are optimistic about the next six months, key structural barriers continue to weigh on progress.
Access to funding (27%) and competition on pay (37%) were cited as the most pressing challenges, alongside concerns about administrative red tape.
Despite these headwinds, the report highlights strong momentum across Ireland’s startup ecosystem.
Startup creation rose by 9% in the first half of 2025, and the country is now home to seven unicorns.
Founders surveyed pointed to expansion goals, with top priorities including accessing new markets (22%), launching new products or services (21%), and fundraising (15%).
However, wellbeing remains an issue.
More than seven in ten founders reported struggling with work-life balance and personal wellbeing.
Sharon Higgins, Ibec Executive Director, Membership & Sectors, said: "Ireland has all the raw ingredients to be a global leader in high-growth, founder-led enterprise.
“Founders are already making a significant contribution- employing over 234,000 people and driving exports and inward investment.
“It's heartening to see continued capital flowing into our brightest startups, including venture capital investment in women-led startups growing by 39% to €200m, but ambition alone is not enough.
“We must continue to find ways to support our founders through targeted incentives, a streamlined R&D tax credit that rewards innovation, and a reduction in the regulatory burden.
“With the right support, Ireland's founders can build world-class businesses, create high-value jobs, and position our country as a global hub for entrepreneurship and innovation."
Ibec has urged the government to act on three fronts: boost innovation by increasing R&I investment and supporting adoption of digital and AI technologies; ease funding constraints by simplifying grants, closing the scaling finance gap, and improving access to EU capital; and strengthen talent pipelines through new training initiatives and expanded Skillnet funding.
