Joe McHugh (Donegal North East, Fine Gael)
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Question 118: To ask the Minister for Enterprise, Trade and Employment the reason there are no grants available for people to set up small new businesses in rural areas; and if he will make a statement on the matter. [5745/08]

Micheál Martin (Cork South Central, Fianna Fail)
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The 35 County and City Enterprise Boards (CEBs) were set up in 1993 to provide support for micro-enterprises in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. The CEBs deliver a series of Programmes to underpin this role and they can provide both financial and non-financial assistance to a project promoter.

The Boards are widely dispersed geographically and provide a single point of contact at local level for new and established small businesses. Rural areas of the country are served by and benefit from, the full range of Enterprise Board grant supports and entrepreneurial development programmes. Subject to certain eligibility criteria urban and rural enterprises may access assistance and support from the CEBs. The forms of financial assistance which are available, subject to certain restrictions, include Capital Grants, Employment Grants and Feasibility Study Grants. The provision of non-financial assistance can take the form of a wide range of business advice such as Programmes covering Business Management, Mentoring, E-commerce, Enterprise Education, and Women in Business networks.

While the provision of enterprise supports can play an important role in terms of community and rural development, I am anxious to ensure that the provision of such supports is delivered in a manner that complements rather than duplicates the activities taking place within the areas of responsibility of any other Department or enterprise support body or agency. Accordingly, there has been in place for a number of years now a local-level sectoral protocol between CEBs and Local Action Groups implementing LEADER-type actions.

In 2008 the Capital allocation for the 35 CEBs stands at over €20m. This will enable the Boards to continue to be actively involved in the area of economic development and will ensure that available funds are targeted to maximise entrepreneurial development at both an urban and rural level. This will be done not just by direct grant aid to businesses and project promoters but also through the provision of a range of other important business supports such as mentoring, business training and business advice all of which help to stimulate indigenous enterprise creation.