Mr. Mark Christal:

I thank the committee for inviting us to today's meeting. I am joined by my colleagues Mr. Michael Brougham, regional director for the midlands and mid-east, and Ms Rowena Dwyer, manager of our policy, planning and corporate relations department. I intend to use my statement as a brief, not to go through it in full but to select the key points.

Enterprise Ireland's primary remit is to support indigenous companies engaged in manufacturing and internationally traded services. The agency also has a responsibility for foreign direct investment in the food and natural resources area. The majority of the companies that Enterprise Ireland works with are small and medium enterprises, SMEs. Through a national network of ten offices the agency works with these companies to assist them to start, innovate, grow their business, target and secure export sales in international markets and strengthen their competitiveness. These companies cross a wide range of sectors and are located in every county throughout the country.

Enterprise Ireland works in partnership with a wide range of enterprise development partners to support a regional enterprise development agenda. These include the local enterprise offices, the business incubation centres and the Design & Crafts Council of Ireland, whose funding comes through Enterprise Ireland. In addition, upon direction from the Government, the agency administers funding schemes to non-agency clients, such as the online retail scheme launched by the Department of Business, Enterprise and Innovation in late 2018 to support eligible SMEs in the retail sector to develop a more competitive online offer.

Reflecting the strength of the Irish economy and of global markets in 2018, Enterprise Ireland companies reported strong employment performance. In 2018 the employment survey reported the highest employment in the history of the agency with 215,207 people employed in Enterprise Ireland-supported companies, 9,119 new jobs created after losses are taken into account and employment growth across all regions. Our clients play an important role in the regional economy. For example, in 2018 some 64% of employment was in client companies located outside Dublin and 61% of new jobs reported were created in companies located outside Dublin. Enterprise Ireland-supported companies sustain over 375,000 direct and indirect jobs nationwide. The total spend in the economy from Enterprise Ireland clients across payroll and goods and services purchased reached €26.79 billion in 2017.

Through our network of 33 international offices, Enterprise Ireland has assisted client companies to increase their exports to a record €22.7 billion in 2017, a growth of 7% compared to 2016's exporting results. Importantly, Enterprise Ireland's clients are increasingly diversifying their global footprint beyond the UK.

We work with client companies under a number of key pillars. First is our work with start-up companies. We have provided full details of that work in the written submission provided to the committee. Worth noting is Enterprise Ireland's new frontiers development programme, the national entrepreneur development programme for early-stage startups, which is run in partnership with 14 institutes of technology throughout the country. Between 2016 and 2018, Enterprise Ireland supported 496 entrepreneurs across the country on this programme. Innovation is essential for companies to be competitive internationally and to win market share. Enterprise Ireland is working with its clients to drive innovation activity via a number of supports In terms of market diversification, Enterprise Ireland is actively working with companies with global ambition to internationalise, and in doing so, diversify their global footprint. Competitiveness is critical for companies to scale, internationalise and assist client companies to stay ahead of competition. In 2018, Enterprise Ireland launched an operational excellence offer. This offer supports established SMEs to target a whole of company transformation, including capital investment, business innovation and training.

There are some challenges of which we are, obviously, very mindful. The outcome of the Brexit negotiations remains uncertain. Brexit will result in increased costs and trade disruptions for both exporting and importing companies. To support client companies navigate potential challenges, Enterprise Ireland has engaged in a programme of building resilience in Irish exporting companies, focused on innovation, market diversification and competitiveness, and addressing the awareness and preparedness of companies to Brexit. Being prepared for Brexit is critical for companies as long-term, structural and disruptive change will emerge. To promote awareness and supported by a national Prepare for Brexit campaign, Enterprise Ireland has developed and launched a Brexit SME scorecard, an interactive online platform which can be used by all companies to self-assess their exposure to Brexit under six business pillars. To date over 4,435 companies have utilised this scorecard. The agency has also launched a Be Prepared grant to support the costs of SME clients up to €5,000 in preparing a plan to mitigate risks and optimise the opportunities arising from Brexit. To date, 156 companies have been approved for support under this initiative. Enterprise Ireland client companies are taking action to prepare for Brexit. A September 2017 survey reported that 38% of clients surveyed had taken Brexit actions. In May 2018 this figure increased to 85% of client companies surveyed. The survey reported that client companies are taking action in areas such as market diversification, developing strategic partnerships, improving operational competitiveness, improving financial management and strengthening business in the UK.

Skills remain a key focus of the agency. Investment in skills and human capital is critical to driving innovation, competitiveness and diversification in Irish businesses. As the economy approaches full employment, the challenges of matching enterprise skills needs with available labour supply comes into greater focus. In partnership with the Department of Education and Skills and the Department of Business, Enterprise and Innovation, the agency is supporting client companies to identify and address their critical skills needs.

I turn to support for enterprise development in the regions. Enterprise Ireland is seeking to ensure that all regions throughout the country are growing optimally based on their innate and unique strengths and capabilities. In this way, jobs will be sustained, created and future proofed and the reach of the agency's client base will be expanded. Within an Enterprise Ireland context, there are three critical components of this. First, we support client companies to grow in all regions. Second, we are building a regional infrastructure that can support enterprise activity including co-working. Third, we are harnessing the enterprise potential of regions and the entrepreneurial assets within them. Enterprise Ireland has made a significant investment in supporting the establishment of infrastructure that can house enterprise activity in regions throughout the country. Details are presented in the table included in our written submission and include the national network of business innovation centres and specialist bio-incubation facilities, community enterprise centres, regional accelerators and business innovation centres. I note also the community enterprise initiative under which 32 projects received funding to support public and private community enterprises. The investment detailed has increased the capacity of regions to offer co-working spaces. Co-working facilities have an important role to play in the rebalancing of regional growth nationally. These facilities can help regions to retain skills and talent and assist companies with skills retention. Giving workers the ability to remain in their localities daily has a positive economic and social impact locally.

Under its regional enterprise development fund, Enterprise Ireland has approved €60 million in investment for 42 projects located throughout the country. This competitive fund, provided by Department of Business, Enterprise and Innovation through Enterprise Ireland, is a key action to support the Regional Action Plan for Jobs, regional enterprise plans and the Action Plan for Rural Development. In line with its investment in regions to date, corporate strategy and national enterprise and regional development policy, the agency will undertake initiatives that will foster an environment where jobs will be created and sustained in regions allowing people to live and work in their local areas. Such initiatives will include fostering increased resilience and productivity within client companies throughout all regions to enhance productivity and agility to respond to economic shocks, such as those emerging from any kind of Brexit; balancing regional development in rural, urban and regional city locations by maximising the investment in regional infrastructure, such as that in co-working facilities, to retain mobile talent in the regions, and making second sites in regional locations a feasible strategy for agency clients with growth plans. We are also seeking to secure food FDI projects in regions and to address the skills challenge facing clients.

Enterprise Ireland is aware that further efforts are needed to ensure that companies are resilient to the challenges they face as they start and scale in regions throughout the country. The agency understands the important positive and social impact these companies play in their local areas. To this end, the agency will continue to work with client companies to support their efforts on innovation, competitiveness and diversification, which are the key attributes of internationally competitive companies. Second sites, skills needs and co-working spaces in regions that build on the agency's investment will also be a key focus. Enterprise Ireland will continue to work with Government and non-governmental stakeholders to support rural, urban and regional city development so that client companies can build on their ambitious strategies to sustain and create jobs throughout the country. I welcome any questions on these activities and thank the committee for the opportunity to talk with its members this morning.