Mr. Leo Clancy:

I thank the Chair and the committee and welcome the opportunity to present to the committee on the topic of current issues affecting trade in Ireland, the supports available to businesses and matters affecting indigenous enterprise with small and medium enterprises and to outline the actions and initiatives that Enterprise Ireland is engaged in to support companies in this area. Enterprise Ireland's purpose is helping Irish companies to start, grow, innovate and win export sales. We work with internationally-focused Irish enterprises across all sectors of the economy, predominantly with SMEs, helping them to strengthen their competitiveness and productivity; to increase innovation and realise their growth potential; and to contribute to employment and economic growth across all regions. We also work with a network of 31 local enterprise offices through our centre of excellence to support the growth of micro-enterprise across the country. Enterprise Ireland's strategy for 2022-2024 is entitled Leading in a Changing World. Our mission, as set out at the start of 2022, is to accelerate the development of world class Irish companies to achieve leading positions in global markets. Since we launched our strategy in early 2022 the trading environment for the agency's ambitious exporting companies has become more challenging. I will address the specific headwinds that Irish indigenous enterprises are facing but we believe our strategy is still the right approach.

In 2021 Enterprise Ireland-backed companies employed more than 200,000 individuals in Ireland, generated €27.3 billion in exports and directly invested €9.79 billion in the Irish economy in the form of wages and salaries, €15 billion in materials produced in Ireland and €6.4 billion in Irish services. The Enterprise Ireland-client companies represented in these figures cover a vast range of sectors including, but not limited to, construction, energy, engineering, food and drink, medical devices, ICT and pharmaceuticals. Our client companies are responding well to current trading issues and are expanding with 315 new overseas presences established in the first nine months of this year across all regions. Client sentiment remains positive with 91% of companies surveyed ahead of our recent international markets week anticipating growth in 2023.

The local enterprise offices, LEOs, have just come out of their eight consecutive year of growth with 7,400 new jobs created by LEO clients in 2021. That is not to mention the thousands of other businesses they have helped with additional measures such as: the training and mentoring programmes; the trading online voucher scheme; the lean for micro programme; the green for micro programme; and the start your own business programme. The LEOs are at the very heart of business development and entrepreneurship in towns and communities right across the country.

In terms of challenges for SMEs, trading performance has recovered very well from the pandemic. Prior to recent inflationary factors, exacerbated by the illegal war in Ukraine, companies were broadly doing well. However, we are keenly aware of the competitiveness issues that are impacting our client base. From our daily interactions with client companies, we have heard that economic headwinds are causing businesses to consider the moderation of their growth ambitions. Energy costs and energy security, inflation and currency fluctuations are major concerns for many indigenous enterprises. These factors were reiterated through a recent survey ahead of our international markets week where we asked several hundred clients about key concerns. Added to these are the consequences and ongoing uncertainty around Brexit, talent and skills shortages, increased costs of funding to grow businesses, an imminent global economic slowdown, supply chain disruption and the potential reversal of globalisation.

We have delivered some specific responses to specific issues, both independently and with our colleagues in the Department of Enterprise Trade and Employment, which I will address. It is important to note that many of the direct concerns for businesses are beyond our control. What is in our control is assisting our clients in maintaining their ability to compete while keeping in mind how increased competitiveness and productivity can have enduring benefits.

I will address those specific issues. First, there is supporting companies that are currently viable but financially vulnerable as a result of the effects of the Ukraine crisis. Energy costs are the most urgent issue facing many Irish enterprises. Working closely with our colleagues in the Department of Enterprise, Trade and Employment, we recently launched the Ukraine enterprise crisis scheme. This €200 million scheme offers two streams of support to manufacturing and internationally traded services companies. Stream 1is a liquidity measure that will help viable manufacturing and internationally traded services companies that experience trading difficulties to access funding up to €500,000. Stream 2is a state-aid support for eligible energy intensive companies that experience severe increases in natural gas and electricity costs in 2022. This scheme is complementary to other supports being provided by the State, including the temporary business energy support scheme, TBESS. We believe that the Ukraine enterprise crisis scheme is an agile response to a developing situation.

The next issue is supporting energy efficiency and decarbonisation. As well as supporting companies through the current crisis, Enterprise Ireland is actively working to help companies to develop and implement sustainability plans that address energy efficiency and decarbonisation. The agency has a range of funding supports under the green transition fund. These include training and business planning supports, and funding for capital investment in decarbonisation and energy monitoring.

The next issue is supporting the digital transition. Under the digital transition fund, which is part of Ireland's national recovery and resilience plan, Enterprise Ireland will increase digitalisation across all businesses across products, processes, supply chains and business models. This will bring about productivity gains, access to new markets, increased innovation and improved competitiveness.

Finally, there are productivity enhancements. Of course all existing proven and effective Enterprise Ireland supports remain open to eligible companies, including funding towards capital investment, job expansion, training, and research and development, and innovation, which are supports that will help companies increase their productivity. We are also actively supporting companies scale by developing leadership and management capability, supporting internationalisation and access to capital.

In conclusion, strengthening resilience in the SME sector and enabling SMEs to compete internationally and in the low-carbon economy are key areas of focus for Enterprise Ireland. We are going to be unwavering in our commitment to preserve and grow employment in terms of both numbers and quality. Enterprise Ireland’s message continues to be that all businesses that need support should contact Enterprise Ireland or their local enterprise office and to not wait but to put in place plans now.

I again thank the Chairman and committee for this opportunity to speak and I would welcome any questions.