John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

The Government recognises that small and medium sized businesses are a key component of the Irish economy and the backbone of employment in Ireland. SMEs make up over 99% of businesses in the enterprise economy in Ireland and account for almost 70% of people employed. Supporting SMEs in the current difficult economic climate is a key Government priority. Government action to support small and medium sized businesses in the domestic economy have been set out in the Action Plan for Jobs 2012 and 2013 and work will continue in the context of the Action Plan for Jobs 2014.

Significant initiatives have been taken in a number of areas, including improvements in access to finance through the credit guarantee and microenterprise loan fund schemes; tackling of the issue of late payments through the transposition of the EU late payment directive into Irish legislation; development of a single licensing application portal in respect of 159 licences across all sectors of the Irish economy, 35 of which are in the retail trade and are provided by 13 different authorities; reform of the county enterprise boards through the establishment of a first-stop-shop for small business through the new local enterprise offices, mandated by an effective service level agreement with Enterprise Ireland; improvements in the competitiveness of the business environment; expanded supports for start-ups, first time exporters; and new schemes to help small businesses recruit via JobBridge, JobsPlus, Springboard and Momentum.

The Action Plan 2014, which is currently being finalised, will seek to build on the progress already made and is set to deliver a suite of actions to support enterprise. The focus of the budget will be very much on entrepreneurship. SMEs will continue to be a key element of this process and a number of proposed actions are currently being examined, the focus of which will be aimed at supporting this vital sector of industry.

The Government is also committed to ensuring that ongoing dialogue with the small business sector is facilitated to ensure that business and Government work together to identify the necessary actions to support SMEs in Ireland. This is being done through the Advisory Group for Small Business and the High Level Group on Better Regulation, which includes representatives of ISME, construction companies and so on. I am encouraged by the progress in employment creation by small business in the last 12 months. Most of the 39,000 additional jobs in the economy have come from the SME sector. However, we have a long way to go. The High Level Group on Better Regulation, which brings together senior Government officials, representatives from local authorities, business and trade unions, also serves as a forum for Government to connect with business. The Government is working to reduce the burden of red tape on companies.

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