Written answers

Tuesday, 20 September 2011

Department of Enterprise, Trade and Innovation

County Enterprise Boards

9:00 pm

Photo of Dominic HanniganDominic Hannigan (Meath East, Labour)
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Question 213: To ask the Minister for Jobs, Enterprise and Innovation the cost per job for community enterprise jobs in County Meath; and if he will make a statement on the matter. [24983/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The role of Meath County Enterprise Board (CEB) as part of the CEB Network is to provide support for small businesses with 10 employees or fewer 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, with priority being given to manufacturing and internationally traded services. CEBs recognise that business growth and job creation are inherent considerations in their activities.

Subject to 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.

The average cost of jobs is calculated by reference to the total capital grants paid to promoters since 1993 and the gross jobs existing at the end of 2010. Meath CEB provided €4.910m in capital grant aid to project promoters over that period with gross jobs amounting to 883, giving an average cost per job of €5,561. Allocations to Meath CEB in relation to current expenditures and soft supports are not included in the cost of jobs calculation.

Photo of Dominic HanniganDominic Hannigan (Meath East, Labour)
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Question 214: To ask the Minister for Jobs, Enterprise and Innovation the micro enterprise supports currently available in County Meath; of these, the companies currently utilising them in County Meath; the amount being spent on them; and if he will make a statement on the matter. [24984/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Meath County Enterprise Board (CEB) as part of the CEB Network provides support for the micro-enterprise sector (small businesses not exceeding 10 employees) in the start-up and expansion phases. CEBs also promote and develop indigenous micro-enterprise potential and stimulate economic activity and entrepreneurship at local level, with priority being given to manufacturing and internationally traded services. CEBs recognise that business growth and job creation are inherent considerations in their activities and while their primary function is to promote enterprise, CEBs can support individuals, firms and community groups provided they have the capacity to achieve commercial viability which is vital to job creation.

The CEBs deliver a range of tailored Programmes and Supports in order to fulfil this role. The overall priorities for Capital expenditure by the CEBs focus on the promotion and stimulation of entrepreneurship at local level and the development of sustainable growth-orientated micro-enterprises, which, over time, can develop into strong export entities. This is done through the provision of both financial assistance and non-financial assistance.

The criteria under which funding is available from the CEBs is based on factors such as the sector of the economy in which an enterprise is operating or intends to operate and the size or proposed size of the enterprise. CEBs can assist in the establishment, and/or development, of new and existing enterprises subject to the following eligibility criteria;

- the enterprise must be in the commercial sphere;

- the enterprise must demonstrate a market for the product/service;

- the enterprise must have a capacity for growth and new job creation;

- the enterprise must not employ more than 10 people;

- the enterprise must not give rise to deadweight or displacement.

Within the above eligibility criteria there are certain priorities and restrictions imposed such as the following;

- priority must be given to enterprises in the manufacturing or internationally traded services sector which over time can develop into strong export entities and graduate to the Enterprise Ireland Portfolio;

- tourism enterprises must be aimed predominantly at overseas visitors;

- locally provided enterprises promoted by the unemployed, those recently made redundant and women re-entering the workforce can be supported provided that those enterprises do not give rise to concerns about deadweight or displacement;

- it is considered inappropriate to support other areas such as retail enterprises, personal services (e.g. hairdressers, gardeners, etc), professional services (accountants, solicitors, etc) lacking export potential, construction, etc, as it is considered that these generally give rise to unacceptable deadweight (where projects would have proceeded anyway) and/or displacement (where the projects simply displace business from other players in the market) concerns.

The CEBs can provide both financial and non-financial assistance to a project promoter. The forms of financial assistance , which are available, subject to certain restrictions and conditional on an agreed business plan, include priming Grants for Start-ups, Business Expansion and Development Grants to assist with pre start-up market or product studies to include testing the viability of the business.

The provision of non-financial assistance can take the form of a wide range of business advice and information services, management capability training and development programmes, e-Commerce training initiatives etc. While these soft supports may not directly generate jobs in an enterprise, they can contribute positively to the wider policy objective of building an enterprise culture which, in time, may result in job creation without direct financial assistance from the State.

Through the provision of both financial and non-financial support the CEBs are central in assisting many micro-enterprises in developing their growth potential and, which over time, can develop into strong export entities where they have sufficient mass to access the services of Enterprise Ireland.

In 2010, Meath CEB provided €230,515 in financial assistance to 32 projects resulting in the creation of 43 jobs and sustaining a further 40. In addition, training was provided to 366 participants. To date in 2011 15 projects have been assisted resulting in 22 full time jobs created, and sustaining a further 22 jobs.

During 2011, Meath CEB and the CEB network will continue to be actively involved in the economic development of microenterprises across the regions.

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