Paul Gogarty (Dublin Mid West, Green Party)
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Question 203: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the grants and other assistance available to unemployed persons seeking to set up their own business; if situations exist in which they can continue to claim welfare and start a self employed enterprise for a defined period; and if she will make a statement on the matter. [4177/10]

Dara Calleary (Mayo, Fianna Fail)
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My Department provides funding to a number of State Agencies, including the County and City Enterprise Boards (CEBs) and Enterprise Ireland, through whom assistance is delivered to businesses. Subject to certain eligibility criteria, new and developing micro-enterprises may qualify for financial support from the CEBs in the form of priming, expansion/development and feasibility/innovation grants. In addition, the CEBs deliver a range of non-financial supports to improve management capability development within micro-enterprises designed to help new and existing enterprises to operate effectively and efficiently so as to last and grow.

However, in order to more fully explore the range of options that may be available, potential entrepreneurs are advised to contact their local CEB to discuss their business needs with the relevant staff of the Board. Contact details for individual CEBs can be found by accessing the following website: www.enterpriseboards.ie.

In addition to the CEB provision, FÁS offers a range of courses through daytime and evening/part-time provision for people who have an interest in establishing their own business. Some courses are exclusively aimed at business start-up and enterprise development training, while broader based courses contain elements or modules that are enterprise related. From a financial assistance perspective, the Department of Social and Family Affairs operates two schemes to assist people on social welfare who wish to become self-employed; namely the Short Term Enterprise Allowance (STEA) and the Back to Work Enterprise Allowance (BTWEA).

The short-term enterprise allowance, introduced from 1st May 2009, provides immediate access to support where people who have lost their jobs and qualify for Jobseekers' Benefit wish to set up a business. Payment under the scheme is at the same rate and for the same duration as their entitlement to Jobseeker's Benefit.

The Back to Work Enterprise Allowance is designed to provide a monetary incentive for people who are dependant on social welfare payments to develop a business while allowing them to retain a reducing proportion of their qualifying social welfare payment, plus secondary benefits, over two years; 100% in year 1 and 75% in year 2. In the case of jobseekers, the qualifying period required for access to the Back to Work Enterprise Allowance is 12 months, provided a person has an underlying entitlement to Jobseeker's Allowance.