Damien English (Meath West, Fine Gael) | Oireachtas source

I thank Senator Byrne for raising this very important issue which allows me to focus on start-up businesses in Limerick and all other counties. It is important to discuss start-up businesses regularly and to highlight the support and encouragement that is available to them. This Government talks a lot about a jobs-led recovery but for that to happen, we need to support existing businesses to sustain existing jobs and to create more but we also need to encourage a number of start-ups to come through the system every year to keep the supply of jobs going. This is essential because the only way we can run this country is through people being employed and paying taxes, which in turn pays for all the services.

We have a very strong pro-enterprise agenda as a Government which permeates local government, the LEO network, Enterprise Ireland, the IDA and other development agencies like Science Foundation Ireland. It is important to recognise that and to channel support to the companies that need it, particularly the start-ups, and to drive their ambition. We really want to help people who are thinking of starting a business, to encourage them to take the plunge and go for it. It can be risky, awkward and difficult. Starting a business is not an easy route to take but we want to make it as easy as possible by providing supports to assist people to start and to grow a viable business. Again, I thank Senator Byrne for raising this and for her continued interest in this area.

I am aware from a recent visit that Limerick's LEO is very successful, as Senator Byrne pointed out. I agree with her that the Limerick LEO is doing excellent work. It is clear that over the last 18 to 20 months as we have dealt with Covid, the staff and teams in our LEOs around the country, as well as the enterprise teams and economic growth teams in various counties really got stuck in. They were always there for businesses, providing them with support and guidance. Staff were always available at the end of a phone line or online to help businesses in difficult times. The business people I meet in Limerick and everywhere else tell me that they really benefited from that support. That is a relationship that the Department is keen to build on. The Tánaiste, with whom I work very closely, wants to be able to drive on that relationship and find new ways to reach companies in order to provide them with support through the LEO network. The Department wants to complement the work the LEOs are doing.

Senator Byrne will be aware that LEOs act as a first-stop shop for providing advice, guidance and financial assistance to those wishing to start or grow their own business. In addition, LEOs can provide information on and referrals to other relevant bodies, including Revenue, Micro Finance Ireland, Fáilte Ireland, LEADER, and Enterprise Ireland, under agreed protocols. They can also guide businesses through the local government system. It is important for people who are thinking of starting a business to engage with the LEO from day one. I have met many business people around the country who have told me that it was a year or two after starting before they went to the LEO for assistance and they regretted that. The benefits of going to a LEO from day one, as the local first-stop shop, are significant and I would encourage people to do so. The staff in our LEOs, including Limerick LEO are there to provide impartial advice. They have worked tirelessly over the past number of years to continue to promote entrepreneurship as a viable employment option. They always encourage enterprise, including among primary, secondary and third level students.. They regularly run programmes to encourage more young people to think of being entrepreneurs.

It is true to say that the Limerick LEO has seen a small drop off in start-up activity in over the past few years but that requires some context and qualification. While it is not something that I would be gravely concerned about because of the times we are in, we need to focus on it and work to address it. The number of potential new entrepreneurs in Limerick remains strong as evidenced by the numbers attending the Start Your Own Business training programme. This year alone, there have been 221 people to date, which gives Limerick the seventh highest attendance nationally and demonstrates ongoing strong interest in entrepreneurship within the county and offers hope for future growth. Another measure that the LEOs use as a significant indicator for the level of start-up activity within a county is the number of successful applicants for priming grants. In this respect, while there has been a decline in priming grants awarded in Limerick, this is part of a national trend with significant declines in the number of grants awarded in many parts of the country. This is largely due to entrepreneurs being reluctant to commence trading in what is an uncertain economic climate.From my recent visits to the LEOs and Limerick in particular, I can say that there is optimism among the LEOs that there will be strong demand for such grants as the economy begins to return to normality.

The local enterprise offices will be receiving an additional €2 million in funding in 2022. This represents an almost 5% increase to drive on with their work. This investment will allow each of the 31 local enterprise offices to enhance the role they play in driving local and regional development, including the regional enterprise plans and the Look for Local campaigns, which have been extremely successful.

The Minister of State, Deputy Troy, and I have been working on bringing forward the work of the SME task force which identified the foremost challenges and opportunities facing SMEs and entrepreneurs. The task force was put together by the Tánaiste approximately this time last year. These include access to finance for SMEs; digital transformation; increasing the number of first-time exporters; enhanced assistance for high-potential businesses; clustering and networks; SME management skills; reducing the regulatory burden on SMEs; delivery of a single portal for business information and assistance; ensuring comprehensive enterprise agency coverage for SMEs; and promoting SME participation in public procurement. We will work with the LEOs and other stakeholders to drive the implementation of this policy agenda and actions in these key areas during 2022. I look forward to having plenty of discussions in this House with Senator Maria Byrne and others as well.

It is also important to note that Limerick can look to its very vibrant multinational sector for employment and growth and, thankfully, many of these businesses were among the least affected by the pandemic. Many budding entrepreneurs are working with those companies already. Often, when the employment market is strong and there is international uncertainty as a result of issues, for example, with the supply chain or inflation, potential entrepreneurs tend to play it safe and stay in employment, rather than taking the risk of starting a business. Employers are doing everything they can to keep them because they are also under pressure to source all the staff they need.