Aindrias Moynihan (Cork North West, Fianna Fail)
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67. To ask the Minister for Enterprise, Trade and Employment what action is being taken to strengthen the resilience, productivity and innovation of SMEs to ensure that they remain key drivers of employment nationally; and if he will make a statement on the matter. [17027/24]

Aindrias Moynihan (Cork North West, Fianna Fail)
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Almost 1.2 million people worked in SMEs across the country last year and many of those were in smaller enterprises with less than ten people. I refer to small businesses, shops, pubs and high-street enterprises that have weathered a range of different storms over the years but are now really struggling and under pressure. I want to get an understanding of the support that would be available to ensure that those viable businesses would be able to continue.

Dara Calleary (Mayo, Fianna Fail)
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Gabhaim buíochas leis an Teachta.

The Government recognises those challenges referred to that are being faced by SMEs. That is why we have, since our inception as a government, put a range of supports in place to deal with Covid-19, supply change disruption, rising energy costs and Brexit.

The Government's White Paper on Enterprise, which we published in 2022, outlines how we will build the resilience and sustainability in our economy as we engage with the two dominant trends of the 21st century - decarbonisation and technological change.

Our Department funds Enterprise Ireland and the local enterprise offices to provide a range of help, advisory services and financial supports to SMEs. These include direct financial assistance through grants, loans and equity investments as well as market research, export development assistance, mentoring and funding for research and innovation.

It is important to emphasise that the challenges are faced by all businesses which is why we have taken steps to extend more support to the non-exporting locally-traded sector. We are currently rolling out the increased cost of business grant, which up to 129,000 businesses across the country can seek to benefit from. In the Deputy's county of Cork, more than 12,000 businesses are eligible to apply. As of this week, 2,500 of them can apply. I reiterate the Minister's call for businesses to engage with this and comment that this is an opportunity to assist with costs at present.

In addition to that, to assist businesses to be more sustainable, productive and efficient, we can focus on lean, green and digital products from the LEOs, which are 31 first-stop shop locally available to provide advice and guidance.

We have allocated an additional €9 million in this year's budget to LEOs to allow them to do that, and in particular to assist businesses in local towns and communities across the country.

We also have a range of products in the growth and sustainability loan scheme and the Ukraine credit guarantee scheme. Finally, we are developing a new national enterprise hub, which we will launch shortly, which will allow SMEs to identify specifically the supports that relevant to them. We know there is a myriad of supports and it can be hard to navigate them at times. This will assist them.

Aindrias Moynihan (Cork North West, Fianna Fail)
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The cumulative cost impact report has been published.

Through that report, Government acknowledges the range of different pressures on various enterprises, but also that certain sectors are under more pressure than others. Hospitality and retail, for example, are seeing a close to 7% increase in their costs in 2024 and that is projected to be up to 20% by 2026. It is clear there are different sectors under phenomenal pressure. We readily acknowledge there has been a very extensive range of supports, which are very welcome. As they are gradually being withdrawn, the pressure is coming on these various sectors and businesses. These are businesses that have, over many years, weathered different storms and have the expertise on hand to do that. They are finding a range of different costs are being added on at this point, which adds to the pressure on them. Is there a plan for coping with that in particular?

Dara Calleary (Mayo, Fianna Fail)
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We see that. The Department commissioned that report so we could get a full understanding of the impact and that is why we are bringing forward a number of measures. The Ministers, Deputies Burke and Humphreys, are finalising an option paper on employer's PRSI. As I said, we are in the process of paying out €250 million of supports to the smallest of businesses. We are looking at a range of measures to reduce red tape. This will be done in the spirit of the kind of supports we have given to small business in recent years, since we came into office in 2020. These supports were proactive and supportive. As the Deputy said, it is a challenge for some businesses to be weaned off those supports, but we are constantly looking to ensure the supports in place are relevant and assistive. Coming back to the increased costs for business, we have reduced the application procedure and made it much easier to apply as a direct response to feedback from businesses about other support schemes.

Aindrias Moynihan (Cork North West, Fianna Fail)
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I acknowledge the huge range of supports that have been put in place over a number of years, from Covid supports to, as the Minister of State outlined, the support on rates and so many other supports. Some of those are gradually being changed and withdrawn. There is the VAT support, for example, and now the further introduction of the rates support. There are myriad supports there and some of them suit certain businesses more than others. Is there a one-stop shop so businesses can identify which is the most suitable and realistic support for them so they can, in turn, inform and shape further supports? Substantial funding is being made available and it is about a joined-up approach whereby businesses will know where to access any supports that are there, while identifying ones that are required. Businesses are seeing huge costs with the minimum wage, auto-enrolment, sick pay and holiday pay all coming along at much the same time and putting a huge burden on them. It is about ensuring they can identify ways of dealing with it.

Bernard Durkan (Kildare North, Fine Gael)
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I am in support. I emphasise the point being made to me, and I am sure everybody else as well, is the time taken to administer all the available assistance. What used to be contained in a single page now goes to 29 pages, which takes time.

Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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I agree with the previous speakers. I have met many small business owners in County Carlow. Their businesses are barely surviving. Grants are becoming a huge issue. Their outgoings are so much. We all welcome the living wage, the PRSI and all the different sick leave we are now looking at. It is important because people are living longer and it is important they are having a good quality of life, but small businesses, including cafés, restaurants and hairdressers are finding it very hard to survive. We need to do something to support small businesses that are under pressure. There is no doubt that these are the ones that are going to close if we do not put in extra supports. We should get the information and the supports to them quickly and do what we can to support them. Many small businesses are struggling. The Minister of State is committed to it, but we need to help and give them support.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Deputies. An enterprise hub will be launched in the coming weeks. It will be a one-stop shop so people can identify which specific support is relevant to them without having to go through a myriad of different forms. I keep coming back to this, but we have made the increased cost of business grant as easy to access as possible. I have given Deputy Moynihan the figures for Cork. In Cork county, 12,000 are eligible. In County Kildare, it is applicable to 4,980 businesses and as of now just over 1,400 have applied. In County Carlow, it is applicable to 1,579 businesses and 448 have applied. Going back to what the Minister said earlier, I ask every Deputy to encourage people to apply for this. We have made the process as simple as possible. This will be paid out in the coming weeks up to €5,000. We will introduce more supports and identify relevant practical supports in the coming weeks to assist our smallest businesses.