Gavin Duffy on the changing face of business success
If you’re anything like me, you’ll find Dragons’ Den on RTÉ compulsive viewing. It’s amazing to see the varied and imaginative solutions people have come up with – often to problems you didn’t even know existed. Listening to the Dragon’s questions gives a lot of insight into the thought process and approach of experienced entrepreneurs. I always take notes that I apply to my own business, and I’m sure I’m not the only one.
So, it was with great excitement that I learnt an interview had been set up with Gavin Duffy – the only Dragon to guard the Den since the show started in 2009. Gavin was already a successful businessman by the age of 17, and has gone on to conquer numerous sectors since then. He also has a keen interest in training, so I knew he would have some valuable insights for our New Frontiers community.
During our chat, we visited some well-worn topics, such as ‘what makes an entrepreneur?’ and ‘do the Irish lack global ambition?’ But we also dug into issues such as education, which I found out is a subject very close to Gavin’s heart.
Is there a particular mindset or personality that makes an entrepreneur?
Of course, not everyone starts a business in their teens as I did. For me, it was a natural progression of what I was doing at the time. Those with the best chance of success aren’t necessarily rushing headlong into it at 17 and making a go of it by some fluke! Typically, the businesses that can really succeed – generate significant revenues and sustainable employment – are those with a founder who has a track record in their sector.
That said, founding a business is a real challenge if you’re older. You might be at the stage where you’ve started a family and have a good job… but you still have that yearning to do your own thing. Deciding to set up a business at that point (jumping the wall, as it were), is a risk and that can be hard on everyone involved.
So, what should those that do decide to jump do first?
There is a fantastic network of support out there these days. You have agencies like Enterprise Ireland or the Local Enterprise Offices (LEOs) where people can get the help and advice to appraise their startup idea.
True entrepreneurs have a vision of doing things in a better way – whether that’s making, delivering, or producing something. My advice at that early stage is to make use of those available channels and get your idea validated. There is assistance and funding out there to help you with this, so make use of it!
As an investor, are you seeing a higher calibre of entrepreneur seeking capital?
I think in the venture capital (VC) world, we see more informed business decisions being made, certainly. Entrepreneurs are framing their pitches more coherently, they understand the ins and outs of investment, and we hear them use the word ‘exit’ when they describe their strategy.
For me, as someone in the investment community, it’s always good to see someone with a track record in their industry bringing a startup idea to the table. Their proximity and familiarity with the area have allowed them to spot a potential solution or market, which they have then tested thoroughly with the supports available.
What about on Dragons’ Den? Has the standard of those opportunities changed over the years?
You have to remember that Dragons’ Den is a TV show, so things are a little different there. The producers are on the lookout for ideas that are either truly brilliant or completely wacky, because good solid businesses don’t usually make the most entertaining TV.
But in terms of the business plans and investment opportunities presented, I would say there has been a marked improvement over the years. I’m impressed by the business knowledge that goes into the pitches; people are generally very well prepared.
How do you feel about the health of the business ecosystem in Ireland today?
The offering of the entire business community has improved in Ireland; whether that’s business advisors, professional services, even entities such as small accountancy firms that are advising young startups and helping them with business plans and financial strategies. Ireland is definitely an enterprising country.
I take part in the Enterprise Towns expos, which are organised by Bank of Ireland. Most people judge the economy by looking at their local high street and the number of vacant retail units can lead to them lamenting the loss of family businesses and assuming that the economy is struggling. But that’s only because retail as we knew it has changed dramatically in the past 10 years, so much of it has moved online and now high streets are mostly about food and coffee!
However, turn up to an Enterprise Town event and you’ll see as many as 150 amazing local businesses. They may be run from a garden shed, or a shared office somewhere, but they are providing employment and are part of the backbone of the country. During the downturn, some people had no choice but to set something up for themselves, and they’ve proved very successful at it. Industries evolve, we have to learn to recognise the changing face of success.
We’re great at small business, then. But some people talk about a lack of ‘global ambition’ in Ireland. Where do you stand in that debate?
I hear that criticism frequently. “Irish entrepreneurs are happy with ‘lifestyle businesses’ and don’t tend to go further. Or they sell up.” I think this complaint overlooks one thing, which is that in the tech world there are different classes of business. Companies such as Stripe are platform businesses – they are a global play from the very start, and the reality is that such businesses will always be in the minority.
If a business involves a branded product – say, a food product – you can achieve success and go on to enter other markets, but there will always be much bigger players in those markets that you have to either compete with or who will potentially make you an offer you can’t refuse.
I don’t believe that somehow Irish entrepreneurs are less ambitious than anyone else. It simply depends on what part of a market you’re in. If you look at the handful of major, global entrepreneurs, Ireland is very well represented. For instance, you have the Collisons (co-founders of Stripe), or Liam Casey (founder of PCH). Go back a generation and you have examples such as Smurfit Kappa, Independent News and Media, or Glanbia.
Given its size, is conquering the Irish market enough?
Ireland is a pretty small market, which means that businesses must think about other markets. It’s tricky being an island market, too. If you’re in mainland Europe and need to meet people or attend an event, you can get to eight capital cities within an easy train ride. That’s not the case here, but luckily technology is changing the way we conduct business and geography is becoming less and less of an issue.
That said, I recognise that the Irish can get quite fixated on their home market. A few years ago, one of my investments, TanOrganic (founded by Noelle O’Connor), was doing very well in the Australian market. Marissa Carter then launched Cocoa Brown in the Irish market, where she completely surpassed us. It shouldn’t have been an issue for us, as we were taking such strides in Australia, but somehow it felt like a failure not be Number 1 back at home.
What’s needed to ensure the next generations can compete in the global marketplace?
I see a key role for education systems, but they are slow to adapt. Primary education is still chalk-and-talk; at junior or leaving cert level the curriculum is still a reflection of where we were 15 or 20 years’ ago – because that’s how long it takes to effect change in the education system.
Both primary and secondary schooling needs to change utterly. No one graduating from university at this point is going to get a job in a company, work for 40 years and then retire with a nice watch. There isn’t a single industry or sector that operates in that way now. Younger generations need to learn a different range of skills.
It’s not the sole responsibility of schools to make this change. Change is required in society generally, that includes parents, and of course business. In a generation’s time, the ‘professions’ as we know them won’t be employing people at the same level or in the same way. It’s a big challenge that we haven’t addressed yet
So if we add Computer Science lessons to the curriculum, everything will be OK?
Technical skills are crucial, of course, but I don’t mean we need an entire generation of coders, either. Creativity and innovation may be ‘softer’ skills, but they matter just as much. Being able to sell yourself, create a product or deliver a service needs to be engendered in the education system, and reinforced at third level.
It’s great to see some of the Transition Year projects around the country, were pupils set up a business and get some real-life experience of what might be involved. For some, that’s their first ever understanding of business. I was lucky, because business was the family pastime. That’s not the case for a lot of kids.
I’m Chairman of an organisation called BizWorld Ireland. We run two-day enterprise workshops for children aged 10 – 13 and there’s one thing that always surprises me. The children in primary school have these truly global ideas – creative, world-changing initiatives. By the time they get to TY, the ideas are a lot less ambitious.
You’ll have come across Sir Ken Robinson’s assertion that education hinders the creativity of students the longer they are exposed to it. I’ve seen direct evidence of that. So, while we’re teaching children the right blend of skills they’ll need for tomorrow’s workplace, we should also be working hard to stop putting up barriers for them. The ambition younger children have is phenomenal, if we can nurture that we’ll be securing a sound footing for the future of business.
Check out Gavin’s recent article What’s your Business Strategy for 2018? – 5 Easy Wins for the New Year for more business insights
[Featured image courtesy of Ruth Medjber – Ruthless Imagery. Gavin Duffy on the set of Dragons’ Den (RTÉ)]