Seanad debates

Wednesday, 1 October 2025

National Social Enterprise Policy: Statements

 

2:00 am

Eileen Lynch (Fine Gael)

Cuirim fáilte roimh on Aire Stáit agus gabhaim buíochas leis as a óráid. What we are discussing today in terms of the national social enterprise policy is incredibly important for rural Ireland. It combines two vital strands, namely that public policy must serve social purpose and that rural and regional areas deserve every opportunity to thrive in a sustainable manner. As per the policy and as the Minister of State outlined, a social enterprise is one that trades in goods and services as a business does, but whose main objective is social, environmental or societal impact, rather than maximising profit. Social enterprises are governed independently and transparently of the public sector.

This policy does not simply support local businesses. It supports inclusive growth, community resilience and a new model of opportunity in rural Ireland, where communities are already doing huge work with sometimes limited resources. As mentioned, the former Minister, Heather Humphreys, originally launched the Trading for Impact policy in 2024. It is the Government's second national policy dedicated to social enterprise. The Minister of State outlined that the policy is structured around five key goals. It also contains 57 actions intended for roll-out through 2027, a key feature of which is the establishment of the Growing Social Enterprise capital fund, resourced from the Dormant Accounts Fund, with grants ranging up to €100,000 to assist social enterprises on a range of issues.

This policy demonstrates that the Government's commitment to social enterprise is not just a fringe concern but a core element in the architecture of social and economic development. It aligns well with our broader commitments to regional balance, sustainable development, inclusion and job creation. The social enterprise agenda is an ideal meeting point between enterprise policy, regional development and climate sustainability goals, and is one of the best tools we have to deliver on these promises. However, if the supports are too centralised or too focused on urban areas, I fear that rural areas may lose out.

To realise the potential of social enterprise, we must ensure that Trading for Impact is not siloed in one Department or confined to narrow definitions of support. I was glad to hear the Minister of State speak earlier about cross-departmental efforts. We must actively align it with rural development, county development plans, enterprise supports via LEOs, skills in education, green transition funding and schemes such as LEADER, SICAP and the community and social enterprise programme. Many of the 57 actions already foresee this cross-departmental co-ordination, as has been outlined, but the proof will lie in the delivery. We must treat Trading for Impact not as a stand-alone document but as a keystone in the Government’s wider vision of equitable growth.

In the constituency of Cork North-West where I live, social enterprise is very much alive and well. IRD Duhallow in Newmarket runs community employment schemes, heritage projects, elder services and training for the community. The Macroom E Enterprise Centre supports start-ups and green initiatives. Millstreet Community Council has supported local employment through community facilities and projects. In Charleville, social enterprises are delivering meals on wheels, youth supports and sports facilities across the area. Our local men's and women's sheds across the regions are small-scale social enterprises in their own right, which keep people connected and tackle rural isolation.

These are exactly the kinds of initiatives that Trading for Impact supports. However, we sometimes see these groups scrambling year to year for small grants or waiting months to find out if funding will be approved. This can be improved. We all know the benefits of a well-deployed social enterprise ecosystem. It can generate local economic activity, especially for people with barriers to the labour market. It can provide services in areas underserved by private enterprise, such as transport, through Local Link, or elderly care. It can anchor climate, biodiversity and nature restoration projects. It can foster stronger local supply chains and act as a beneficiary for grant, philanthropic or EU funding that is purpose-driven. In practice, however, social enterprises in rural Ireland can often face a dual disadvantage, with lower density of supports, higher fixed costs, more fragile local markets and weak access to capital or risk finance. The voices from social enterprise networks confirm this in their submissions.

This is a good, exciting policy. However, there are probably elements of it that we can improve. I would like to see the introduction of dedicated social enterprise hubs in rural areas. Local development companies, like IRD Duhallow in north Cork, which I have already mentioned, provide this service but they need more support to help more social enterprises navigate the many funding streams that are available and the maze of applications.

I am glad to hear the Minister of State's commitment to stronger integration with LEOs and enterprise supports.The feedback from many social enterprises is that they can sometimes be turned away from LEO supports because they do not fit the standard business model. This has to change. We need to focus on training our LEO staff on social enterprises and how to support them because this would make a really big difference locally.

There are many issues in rural areas that affect social enterprises, such as broadband gaps and a lack of public transport. For this reason, social enterprise needs to tie in directly with rural broadband, retrofitting and transport schemes.

It is also important that we deliver stronger education on social enterprise. One of the biggest challenges in rural areas is young people leaving for urban areas or emigrating. If we can create opportunities for them to start or join a social enterprise, it may give them a reason to stay at home. Secondary schools and colleges should be encouraged to promote social enterprise as a career option and to provide more education around it.

The Minister of State has mentioned the stakeholder engagement forum. I would like an update on that in relation to rural voices at the table, even though I know he noticed there were many cross-body stakeholders. On top of that we should, potentially, consider introducing a local evaluation forum, perhaps at county level, to track progress from county to county or region to region, and to flag or highlight potential blocks in areas that other areas may face in future.

This is a bold and welcome initiative. It will allow for social enterprise as a lever for inclusive growth, sustainability and resilience, but we need to ensure we localise it where we can. The success of this policy will not just be measured by the number of social enterprises but also by its contribution to resilient, deeply rooted local economies that ensure no region is left behind when it comes to development. I look forward to engaging in the Seanad and across government to ensure that Trading for Impact becomes not just a policy document but also a lived reality in every rural corner of the State.

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