Billy Kelleher (Cork North Central, Fianna Fail)

Our industrial policy is based on maintaining a positive business environment allied with specific targeted supports for enterprises through the enterprise development agencies. The positive business environment benefits all enterprises including all small and medium-sized enterprises referred to by the Deputy.

The supports through the enterprise development agencies are targeted at enterprises in manufacturing and internationally traded services in order to maximise export potential and foreign earnings. The availability of resources to support enterprises is limited and must therefore be targeted at those sectors that provide the best opportunity for growth. SMEs account for 99% of all enterprises in Ireland. While many of these are eligible for and receive assistance from development agencies such as Enterprise Ireland, FÁS, and the county and city enterprise boards, it would not be appropriate or financially feasible to grant aid all small and medium-sized enterprises in the country.

There are 35 county and city enterprise boards located throughout the country. The boards are the primary reference point for enterprise advice and support at local level for start-up and expanding businesses. In addition to providing financial support to local businesses the boards also provide a range of non-financial supports such as training, mentoring, information and advisory services as well as networking opportunities and enterprise promotion activities. In providing financial support the boards must give priority to manufacturing and internationally traded services, must always take account of potential deadweight and displacement, and must primarily focus on the micro-enterprise sector, which comprises businesses employing ten staff or fewer.

The overall priority for capital expenditure by the boards is on the development of sustainable growth-orientated micro-enterprises, which over time can develop into strong export entities and graduate to the Enterprise Ireland portfolio. This is a carefully balanced and structured approach to the provision of State support to indigenous industry. Eligible SMEs above the micro-enterprise level can be assisted by Enterprise Ireland where they match that agency's operating requirements.

The county and city enterprise boards have played a pivotal role in developing, sustaining and growing micro enterprise at a local level since their inception in 1993 and this sector will be crucial to Ireland's economic recovery through employment creation and the creation of new businesses. The majority of the boards are currently experiencing an increase in the volume of their activities from their current client base. With increasing numbers of people seeking advice on starting their own businesses, many boards are providing additional "start your business" courses and increased levels of mentoring for owner-managers who are experiencing trading difficulties. In addition the boards are rolling out a revised and more flexible range of financial supports for the micro-enterprise sector.

See this speech in context