The current economic climate presents aspiring entrepreneurs with unprecedented opportunities, Dr Michael Smurfit, chairman of Jefferson Smurfit Group, told a lecture yesterday.

But globalisation and the trend towards consolidation have removed many of the opportunities for growth that allowed Dr Smurfit build Jefferson Smurfit into a global business over the past 30 years, he said.

Smurfit was bought by US venture capital house Madison Dearborn for €3.5 billion last year.

Failure to adapt can ring a death knell for business, Dr Smurfit said. Many of those who dominated Irish business 30 years ago had become extinct because they were unable to keep pace with the emergence of a competitive global marketplace. Jefferson Smurfit had achieved success "on the back of others' mistakes".

But it was also true that the firm might not have become a multinational operation had current market conditions prevailed.

"The influence of globalisation in the packaging industry has removed the opportunities for growth which typified the early years of the Smurfit group.

"While improving competition, the forces of globalisation also mean that scale is acting as the most potent barrier to entry," he said.

Dr Smurfit was speaking at the dedication of the Norma Smurfit Library in the new campus of the National College of Ireland (NCI), at Dublin's Irish Financial Services Centre. Ms Smurfit is Dr Smurfit's former wife.

"The economic conditions which this State has enjoyed over the past number of years have heralded unprecedented opportunities for individuals with the courage and desire to succeed," Dr Smurfit said.

Cautioning the emerging generation of entrepreneurs against the dangers of becoming enmeshed in red tape, Dr Smurfit said the recent spate of corporate scandals in the US placed a heavy onus on the business community to restore its credibility.

Business leaders must balance responsibility to stockholders, customers and employees. While compromise is sometimes inevitable, they should never ignore their gut instincts.

Dr Smurfit was addressing an audience that included Mr Denis O'Brien, chair of the National College's governing body; Prof Joyce O'Connor, president of the college; and Ms Norma Smurfit, who is a fellow of the college.