David Stanton (Cork East, Fine Gael)
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Question 222: To ask the Minister for Enterprise, Trade and Employment further to Question No. 270 of 22 March 2005, the way inwhich the Government supports and encourages existing small and medium indigenous Irish businesses which do not form part of the manufacturing or internationally traded services sector; and if he will make a statement on the matter. [12401/05]

Micheál Martin (Cork South Central, Fianna Fail)
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The small and medium sized enterprise sector is supported and encouraged by the Government's active and constant pursuit and promotion of an economic environment that is supportive of entrepreneurial activity, combined with a wide range of targeted interventions by various State enterprise development agencies. The strong focus of many of the interventions, particularly those involving financial support, on businesses in the manufacturing or internationally traded services sector reflects the key importance that the sector plays in building Irish economic growth, as well as concerns about the strong risks of deadweight and displacement that are a particular concern in the non-traded services sector. It is not appropriate to give financial aid to a local service in circumstances in which the increased activity arising from the support is likely to be achieved at the expense of other similar businesses in the locality.

Ireland's extraordinary success in the past decade has been and continues to be built on key competitive strengths, such as one of the lowest taxation regimes in Europe, access to the EU internal market, a well-educated and skilled workforce and a history of Government policies that are pro-business and provide a benign business environment. The Government is committed to the continued support and development of such strengths. It appears that the actions being taken are achieving the objective of ensuring that we have an environment in which small and medium sized enterprises can flourish. The global entrepreneurship monitor report for 2004, which is the premier cross-national assessment of entrepreneurship, shows that Ireland is performing extremely well in terms of entrepreneurship activity. It is in second position overall in terms of total entrepreneurial activity among all EU member states.