Terence Flanagan (Dublin North East, Independent)
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214. To ask the Minister for Jobs, Enterprise and Innovation if he will address a matter (details supplied) regarding small and medium sized enterprises. [14004/15]

Richard Bruton (Dublin North Central, Fine Gael)
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According to the Central Statistics Office (CSO), the number of SMEs in Ireland in 2012 (most recent figures available) was 185,049. The numbers have been declining since the economic crisis in 2008. Self-employed workers may access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of means-tested jobseeker’s allowance they can apply for this scheme if their business ceases or if they are on low income as a result of a downturn in demand for their services.

The 2013 report of the Advisory Group on Tax and Social Welfare on extending social insurance coverage for the self-employed found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. In this context, the Group noted that almost 9 out of every 10 self-employed people who claimed jobseeker’s allowance during the three-year period from 2009 to 2011 received payment.

My Department provides a range of supports for SMEs. Since this Government came to Office in March 2011, it has worked across its various Departments and agencies to ensure that all enterprises have access to appropriate finance for both working capital and investment.

In order to assist SMEs to grow and create jobs, my Department put in place two novel credit schemes: the Microenterprise Loan Fund (managed by Micro Finance Ireland) and the Credit Guarantee Scheme to support viable enterprises, from all sectors, who have been refused bank credit. Both schemes have been the subject of review and appropriate improvements to both schemes are in train. My Department also provides a range of grants, equity and venture capital finance through its agency, Enterprise Ireland.

The Local Enterprise Office network provides a range of financial and non-financial supports to help enterprises at start-up or during business expansion phases, including acting as a gateway to accessing finance from Micro Finance Ireland (MFI), which offers support in the form of loans of up to €25,000 to start-up, newly established or growing microenterprises employing less than 10 people with viable business propositions that do not meet the conventional risk criteria applied by the banks. Applications for the Microfinance Fund should be channelled through the local LEO. Further information can be found on the LEO website at .

The Minister for Finance has recently established the Strategic Banking Corporation of Ireland (SBCI). The SBCI will the ensure access to flexible funding for Irish SMEs by facilitating the provision of:

- Flexible products with longer maturity and capital repayment flexibility, subject to credit approval;

- Lower cost funding to financial institutions which is passed on to SMEs; and

- Market access for new entrants to the SME lending market, creating real competition.

Further information on cross-Government initiative to help enterprises, entrepreneurs and start-ups may be found on the Supporting SMEs Online Tool at .

Other recent supports for SMEs include changes to the Seed Capital and Employment and Investment Incentive (EII) Schemes which provide more tax relief in respect of business investment. The EII is being amended to raise company limits, increase the holding period by 1 year and include medium-sized companies in non-assisted areas and internationally traded financial services. The Seed Capital Scheme is being revised and made easier to access, with eligibility extended to individuals who have been unemployed up to 2 years. The new Scheme will be called “Start-Up Refunds for Entrepreneurs” (SURE).

I am confident that the supports in place for SMEs will help further develop this vital contributor to economic growth in Ireland.

Terence Flanagan (Dublin North East, Independent)
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215. To ask the Minister for Jobs, Enterprise and Innovation the supports available for persons who wish to set up a new business. [14005/15]

Richard Bruton (Dublin North Central, Fine Gael)
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In the first instance, existing and prospective businesses can access the new online search tool for SME business supports that was launched last year. The Supporting SMEs Online Tool is a cross-governmental initiative to help Irish start-ups and small businesses navigate the range of Government business supports for which they could be eligible. The Supporting SMEs Online Tool can be accessed at . The Local Enterprise Offices (LEOs) are the first-stop-shop service assisting in delivering business growth and jobs for the small and micro-enterprise sector. The LEOs are the first port of call in terms of advice, training, signposting to other support providers and, in certain circumstances, grant support for anyone who wishes to start or expand a business.

The LEOs themselves provide a range of financial and non-financial supports to help enterprises at start-up or during business expansion phases. It should be noted, though, that the LEOs generally only grant assist enterprises in the manufacturing or internationally traded services sector, which over time can develop into strong export entities. However, there are other non-financial supports available, such as mentoring and training, and the LEO staff can advise as to which supports would be most appropriate to an enterprise’s situation.

In addition, any business can use the LEOs as a gateway to accessing finance from Micro Finance Ireland (MFI), which offers support in the form of loans of up to €25,000 to start-up, newly established or growing microenterprises employing less than 10 people with viable business propositions that do not meet the conventional risk criteria applied by the banks. Applications for the Microfinance Fund should be channelled through the local LEO. Further information can be found on the LEO website at .

Enterprise Ireland is the national agency under my aegis with responsibility for the development of Irish enterprise, deepening Ireland’s footprint in world markets, and supporting employment creation in our economy.

Enterprise Ireland works to increase the number of companies starting-up, succeeding, expanding, exporting and ultimately creating jobs in Ireland. EI’s support system for young companies includes help with business planning, mentoring and development advice, feasibility funding and finance, often in the form of equity investment, as appropriate to the founder’s ambitions and the company’s potential and stage of growth.

Enterprise Ireland’s 10 regional offices work closely with entrepreneurs, local development agencies and local representative bodies offering a wide range of supports for entrepreneurship. Enterprise Ireland is also actively engaged in creating and maintaining relevant networks, which provide a pipeline of early stage entrepreneur enquiries.

The Government’s Action Plan for Jobs sets out a comprehensive set of measures to support entrepreneurship, SMEs and the self-employed. One of the key priorities in the 2015 Plan is driving implementation of the actions in the National Entrepreneurship Statement, which was published last October, and to achieve the ambitious targets set out for a 25% increase in the number of start-ups and in the scaling and sustainability of new enterprises. The Action Plan for Jobs sets out a range of actions that will positively impact on entrepreneurship including measures to promote entrepreneurship in the areas of education and research, business environment and supports, innovation and access to finance, networks and mentoring, and access to markets.

Terence Flanagan (Dublin North East, Independent)
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216. To ask the Minister for Jobs, Enterprise and Innovation if he will address a matter (details supplied) regarding credit for small businesses; and if he will make a statement on the matter. [14009/15]

Richard Bruton (Dublin North Central, Fine Gael)
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My Department put in place two credit schemes in 2012: the Microenterprise Loan Fund and the Credit Guarantee Scheme. Microfinance Ireland (MFI) was established to manage and control the Microenterprise Loan Fund. I provided a €10 million Exchequer allocation to MFI in 2012 which will be supplemented by €5 million from the three main banks to cover the first 5 years of the Fund. There is scope within the legislation for further funding to be provided in the future.

MFI provides loans of up to €25,000 to start-up, newly established, or growing microenterprises employing less than 10 people, with commercially viable proposals that do not meet the conventional risk criteria applied by banks.

The latest figures which are published each quarter on my Department’s website show that MFI had, up until the end of 2014, received 887 applications with 704 applications fully processed. Overall there had been a 59% approval rating with loans of €6.3 million approved at that point. MFI applications are required to complete a standard loan application form which is available from MFI’s website.

The SME Credit Guarantee Scheme (CGS) provides a 75% State guarantee to banks against losses on qualifying loans to eligible micro, small and medium enterprises. and can facilitate up to €150 million of additional lending per year.

The latest figures which are published each quarter on my Department’s website, up to end of 2014, show that 162 CGS facilities totalling almost €22 million had been sanctioned resulting in 649 new jobs being created and 333 jobs maintained. Applications are made through participating lenders (currently Bank of Ireland, Allied Irish Banks and Ulster Bank), on a Borrower Scheme application form

Both credit schemes have been reviewed and my Department is working on implementing the review recommendations.

In addition to the above schemes, the Government through the NPRF has put in place an SME Credit Fund, Bluebay Ireland Corporate Credit I Limited and more recently established the Strategic Banking Corporation of Ireland (SBCI) to ensure access to flexible funding for Irish SMEs.