John Lyons (Dublin North West, Labour)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation in view of the fact that there is no specific youth entrepreneurship fund in Ireland, if he will consider setting up a Youth Entrepreneurship Fund on a pilot basis, to help young entrepreneurs access credit to develop business ideas and create employment; and if he will make a statement on the matter. [47723/12]

John Lyons (Dublin North West, Labour)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation if he will engage with private sector sources, the European Union, the European Investment Bank and the IMF to source funding for a Youth Entrepreneurship Fund; and if he will make a statement on the matter. [47724/12]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose taking Questions Nos. 426 and 427 together.

The Government established the Microfinance Loan Fund on 27 September 2012 to improve access to credit for entrepreneurs and micro-enterprises and to facilitate the growth and expansion of viable businesses from all industry sectors which have been refused access to credit by banks. The Fund has a significant entrepreneurship focus. It will add value to other Government schemes of support for entrepreneurs and unemployed persons, such as the Back to Work Allowance, the range of training programmes and the Seed Capital Scheme.

The Fund will provide support in the form of loans of up to €25,000, available to start-up, newly established, or growing microenterprises employing less than 10 people, with viable business propositions, that do not meet the conventional risk criteria applied by banks. Microfinance Ireland (MFI), the company set up to operate the Fund, will work closely with the County and City Enterprise Boards (CEBs) / Local Enterprise Offices which provide assistance with training and preparing business plans for entrepreneurs. They will carry out an initial evaluation of the quality of business proposals/loan applications from entrepreneurs before sending same on to MFI for decision. The addition of microfinance will now enable the CEBs to deliver a wider suite of services to all entrepreneurs, namely grants, mentoring, soft supports and access to loan finance.

MFI and the CEBs are very conscious of the particular difficulties the youth sector faces with regard to credit history, previous business experience etc. and where they can assist young entrepreneurs, they will. However, the potential viability of the business proposal is the dominant factor in any credit decision made by Microfinance Ireland.

In addition to MFI and the CEBs, other sources of funding are available for example, the Seed Capital Scheme, business angels, E.I.I.S etc. While access to start-up finance through the various channels outlined is important to support youth entrepreneurship, other policy actions are equally important such as fostering entrepreneurship in students while at school or in third level education. Over 20,000 students now participate annually in the various CEB–supported programmes implemented in the education sector. (see answer to PQ 47725).

Microfinance Ireland has sought European Investment Fund (EIF) accreditation under the European Progress Microfinance Facility to avail of the EIF loan book guarantee which is anticipated to cover approximately 25% of bad debts incurred. A decision is expected from the EIF in November 2012.

The Government continues to monitor the requirements of all business sectors regarding access to finance and in that context will continue to assess the needs of youth entrepreneurs in the light of the operation of the Microfinance Loan Fund and the availability of support from sources such as the EU, EIB and IMF. If there is a clearly identified need for a further targeted initiative to address market failure in this sector the matter will be addressed by relevant Departments. A guide entitled “Financial Support for Irish Business” has been published on my Department’s website at under “latest publications”.

John Lyons (Dublin North West, Labour)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation his plans to engage with local County Enterprise Boards, Enterprise Ireland and others to help support youth enterprise here; his views on whether further targeted supports are required to foster the talent and ideas of our young persons to allow them develop business ideas; and if he will make a statement on the matter. [47725/12]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Young Entrepreneurs can, as their first port of call, contact their local County or City Enterprise Board (CEB) to discuss what options may be available to them in relation to their proposed business venture. The CEBs provide both financial and/or non-financial assistance to microenterprises in the start-up and expansion stages. Encouraging and promoting a youth enterprise culture is an important area of activity for the CEBs. Through various programmes and initiatives, the CEBs seek to influence student attitudes in favour of enterprise. Examples of initiatives provided by the CEBs at both primary and secondary level include the annual Student Enterprise Awards, as well local or inter-County initiatives such as Exploring Enterprise, Celtic Enterprise and Bí Gnóthach Enterprise. Over 20,000 students now participate annually in the various CEB–supported programmes implemented in the education sector. Contact details for the CEBs can be found on

The ‘Think outside the Box’ competition, co-sponsored by Enterprise Ireland, Invest Northern Ireland, Cruickshank Intellectual Property Attorneys, Mammoth Advertising, Grant Thornton and Intel is open to all full time Third Level students in the island of Ireland. The competition offers Third Level students from all academic disciplines and courses, the opportunity to realise their entrepreneurial ambitions and is designed to encourage innovation, promote enterprise and foster a spirit of entrepreneurship among Third Level students. As well as €30,000 in cash prizes, the competition offers €30,000 in consultancy to help the finalists make a serious start at making their idea a commercial reality. This year, “Think outside the Box” attracted submissions from over 360 Third Level students from colleges across Ireland. Enterprise Ireland will continue to participate in the “Think outside the Box” competition in 2013.

Enterprise Ireland also supports young Third Level researchers through a number of initiatives including: the Enterprise Ireland Commercialisation Fund; Innovation Vouchers; Innovation Partnerships; Applied Research Enhancement Centres; Technology Centres; Campus Incubation Units and FP7. Contact details for Enterprise Ireland can be found at the Agency’s website

In addition the Government established the Microfinance Loan Fund on 27 September 2012 to improve access to credit for entrepreneurs and micro-enterprises and to facilitate the growth and expansion of viable businesses from all industry sectors which have been refused access to credit by banks. The Fund has a significant entrepreneurship focus and is open to entrepreneurs and aspiring entrepreneurs of all ages. Microfinance Ireland (MFI), the company set up to operate the Fund, will work closely with the County and City Enterprise Boards (CEBs) / Local Enterprise Offices which provide assistance with training and preparing business plans for entrepreneurs. Microfinance Ireland, the CEBs and Enterprise Ireland are very conscious of the particular difficulties young entrepreneurs face with regard to credit history, previous business experience etc. and where they can assist young entrepreneurs, they will do so. However, the potential viability of the business proposal is the dominant factor in any credit decision made by Microfinance Ireland.