Long live real business

Something beautiful is happening here in Dublin, Ireland. The death of credit has made way for the re-birth of value.

Industry is a brand new boutique store selling second-hand and new home-ware items in Dublin

For too long, money was too easy to come by. Big and ugly businesses bathed in cheap cash. This seemingly infinite supply of capital for anyone who could talk the talk locked up the supply of finite resources—like good people and retail property. The little guys with big dreams were handicapped by the big guys with little ambition but to maintain the status quo.

Shakes is a new, small and seemingly independent milk shake bar in Dublin

But in 2008, the smoke cleared and the mirrors cracked and any business running on credit was caught with their pants down. To put it mildly, the economy of The Republic of Ireland is screwed. And yet since 2008, there has been more innovation and invention than had been witnessed in the ten years preceding.

The Diesel chain store on Suffolk Street is “relocating” to an unspecified location, aka shutting down

For every Diesel or Londis that “relocates”, it seems two Third Floor Espressos or Murphy’s Ice Creams open their doors.

This Londis shop on Dame Street in Dublin is “moving” to another Londis already across the road, aka shutting down

And this is the reason that The Republic has a future as a first world country. This is growth built with concrete and steel, not plywood and sticky tape. Independent businesses relying on revenue for working capital need to worry about things like customer service and the value of their product to survive; qualities that never go out of fashion in any economy.

Third Floor Espresso is a small, new, independently-owned specialist coffee shop on Abbey Street in Dublin

The parallel with the web economy is striking—risky, reckless, feckless venture capital is dead and businesses that actually create value are thriving: GitHub, BeanStalk, 37signals, Campaign Monitor… They’re all driven by revenue. And better still, they employ talent that was previously imprisoned by easy venture capital.

Murphy’s Ice Cream have grown very steadily over the past 10 years and have recently opened two new locations in Dublin City

Here’s to hard-earned money and wonderful, real businesses that deserve it!