Deirdre Clune (Fine Gael) | Oireachtas source

I thank the Minister of State for discussing SMEs and his work in that regard. We are facing into European SME week, which is another important milestone in the development of a strong SME culture in Ireland. I congratulate the Minister of State on the advisory group that he established. It has fed into the Action Plan for Jobs 2012 and will do likewise in respect of the upcoming 2013 programme.

Kerry Group made a significant announcement today concerning new jobs in Kildare. That campus will not be an SME, but for every job established at that level, there will be an estimated spin-off of 2 jobs in the community. It is important that we recognise this aspect of the development.

Last week or the week before, the Minister, Deputy Bruton, launched the Global Entrepreneurship Monitor, GEM, 2011 report for Ireland. There were some positive elements, but the low number of people perceiving opportunities for new businesses was a concern. That number saw no signs of increasing in 2011. The microfinance scheme was opened for business on Monday, 1 October.

I hope that scheme, which will provide ¤90 million in microfinance, will be successful in encouraging entrepreneurial activity. Many people have the skills and drive to start up a business but they feel it might be risky to do so in the current climate. The microfinance scheme will give them the necessary encouragement.

The Minister for Social Protection, Deputy Joan Burton, is conscious of the importance of social insurance for self-employed people and is looking at the issue. Issues such as this must be resolved to give people the confidence to set up their own business.

The global entrepreneurship report also found that men are 2.5 times more likely than women to be early stage entrepreneurs. It is crucial that this issue be addressed. Senator White referred to a conference at which she is speaking next week, and I wish her well with that. Earlier this year, Enterprise Ireland established a ¤250,000 competitive feasibility fund targeted at female entrepreneurs. The fund closed in September. Has the Minister an update on the progress of the fund?

The report also noted a higher rate of business closures in 2011 than in the previous ten years. We had a difficult year in 2011. With this in mind, the credit guarantee scheme will provide support for job-creating SMEs. Initiatives such as SME week and the conference to be held on 1 November will be very important in this regard.

On Saturday last, I attended a conference in Cork organised by Network Cork, a network for women in business. At the conference, Mr. Seán Kelly, MEP noted that it is 20 years since the European Single Market came into effect. The Minister of State also referred to this in his speech today. A range of opportunities have arisen since then. We have cheaper international telephone calls, cheaper flights, services trading across borders, better procurement rules and a more level playing field for consumers. All of these developments help SMEs trade across borders. Nevertheless, the figures show that Irish SMEs do not engage sufficiently with their European counterparts. The idea of the Single Market and the expansion of the EU was that we would have a single market of 500 million people. Only 40% of Irish SMEs trade within Europe and only 13% trade outside the EU.

Culture and language are also important if SMEs are to do business with other countries. Some contributors at Saturday's conference spoke about the importance of language and culture. Doing business in Italy, for example, is different from doing business in Germany. In Germany, one is paid on time and one knows where one stands, whereas in Italy, one must take a more laid back approach. Knowing the language is very important.

The issue of language comes up time and again. A recent report from the expert group on future skills needs identified the fact that our teaching of foreign languages is not up to the required standard. We must develop a five to ten year programme for the teaching of foreign languages in our schools. That should include Mandarin, although I accept that we are concentrating on EU trade this week. We are falling down in our foreign language skills, and they are very important. It is not necessary to be fluent in a language, but we should know enough to do business, be polite and engage with business people in other countries. That goes a long way. The importance of personal contact cannot be overstated. It is more effective than e-mail or texting. The support of the Minister will be important for SMEs who want to progress to trading abroad in other EU countries.

Access to credit has been mentioned by many speakers.

I note that Mr. Trethowan's report this week was critical of the banks. It is the second report in a row, the eighth and ninth, to be so critical. He outlined how he had ensured 100 decisions were overturned, which led to ¤10 million being made available through the supply of credit and almost 850 jobs being supported. That is very encouraging. All companies that have been refused credit, even where there is a perceived verbal refusal, should be encouraged to progress the matter by dealing with it through the channels that have been set up, as outlined in Mr. Trethowan's report. He gives some very significant examples of how credit was denied to well established businesses and businesses with a credible business plan and potential.

The retail sector is one in which the Minister of State has a great interest. It is suffering at present. Consumer sentiment is at a very low level. It is understandable because people do not have confidence and are worried. They are anxious to hold onto whatever money they have and they are certainly managing their spending. The retail sector has suffered extensively as a result. In the run up to the Christmas period the Minister should use his very public platform to encourage people to buy Irish and not to buy on-line unless it is from an Irish company. He should encourage people to support their local traders, particularly those who have set up businesses in our cities and towns. They need to be supported in the spending period between now and Christmas.