Significant challenges in scaling Irish enterprises — PwC calls for co-ordinated national action

David McGee, Partner, Strategy&, PwC Ireland, commented: “Ireland's economic success has been significantly bolstered by foreign direct investment. Yet, to ensure long-term resilience, we need a new strategic approach to both nurture and retain Irish-owned multinationals, while also developing a strong indigenous sector that has ownership and decision-making rooted in Ireland.

“While Ireland excels at fostering startups—thanks to a robust university sector, entrepreneurial spirit, and State support—the central challenge lies in scaling these companies into global players. A co-ordinated national approach is needed.  We distil these challenges into what the analysis terms the ‘three Cs — Capital, Capability and Culture.”

The Three Cs: Capital, Capability, and Culture

Capital constraints remain a critical barrier 

PwC highlights that a notable financing gap persists for scaling companies, particularly at later-stage funding rounds. The domestic venture capital market remains relatively small, with fund sizes insufficient to support large-scale growth.

As a result, many firms continue to rely on internal funding and exhibit caution towards external debt and equity financing, leaving them undercapitalised. While policymakers have introduced measures such as state-backed scale-up funds and tax incentives, access to suitable growth finance remains a key issue.

PwC notes that international examples highlight alternative approaches. Other countries, like Singapore with its Temasek fund, have deployed large sovereign-backed funds to accelerate indigenous business growth. In Ireland, further mobilisation of resources—including the Ireland Strategic Investment Fund (ISIF), deeper collaboration with the European Investment Bank (EIB), and unlocking private and family-owned capital—could play a pivotal role in advancing the national scaling agenda.

Capability and talent shortages constrain growth ambitions 

Scaling companies also face significant challenges in sourcing and retaining skilled talent. According to PwC’s 2026 Irish CEO Survey, 60% of Irish business leaders report difficulties in accessing key skills.

Shortages are particularly acute at senior and specialist levels, with firms struggling to secure experienced leadership capable of driving scale. While initiatives range from funding tech education and apprenticeships, to improving schemes like the Key Employee Engagement Programme (KEEP) stock options, further efforts are needed to close capability gaps and support business growth.

Cultural factors impact scaling potential 

PwC notes a conservative growth mindset among Irish SMEs is limiting scaling ambitions. Only 14% of Irish CEOs report a high tolerance for risk in innovation projects, reflecting a broader caution towards expansion and investment.

This risk aversion, coupled with a preference for maintaining current scale, continues to restrict growth opportunities. The challenge extends beyond individual attitudes, reflecting wider societal attitudes towards risk, success and entrepreneurship.  PwC is of the view that ‘scaling is a national strategic issue’.

Driving a national scaling agenda 

PwC says that these barriers will require a co-ordinated national effort.  The firm calls for a stronger national focus on celebrating indigenous business success and building structured peer networks to help harness and grow the best of Irish enterprise and talent. 

10-Point Multi-Year Plan for Scaling

To address these structural barriers, PwC proposes a comprehensive 10-point multi-year plan spanning tax reform, capital mobilisation, talent development, and policy simplification that champions indigenous business. Key recommendations include:

• Establishing a Sovereign Scale-Up Capital Fund to close the later-stage funding gap and reduce reliance on foreign capital.

• Reforming capital gains tax and entrepreneur reliefs to incentivise long-term ownership and reinvestment.

• Enhancing employee ownership schemes to improve talent attraction and retention.

• Introducing targeted visa programmes and leadership development initiatives to strengthen the talent pipeline.

• Simplifying the tax system to reduce administrative burdens on scaling firms.

• Expanding incentives to retain headquarters and intellectual property within Ireland.

• Actively celebrate Irish‑owned multinationals and mobilise the global Irish business network.

Colm O’Callaghan, Tax Partner, PwC Private, said: “As Ireland seeks to remain competitive globally, tackling these structural challenges across capital, capability and culture will be essential to unlocking the next phase of business growth. Recognising the scale of the challenge, implementation will require a multi-year, coordinated approach rather than short-term interventions. However, international competition is intensifying, with countries deploying increasingly ambitious strategies to retain and grow domestic firms.

“Ireland is in a global race to scale its indigenous enterprises.  The opportunity is clear – but so too is the threat if we do nothing. Therefore, this needs urgent and decisive action, without which the next generation of Irish multinationals risk being built elsewhere.”

ENDS

Notes to editors:

A scaling company is one that has the potential to become a mega firm – an indigenous company that can create significant gross value add in the economy.