Written answers

Tuesday, 19 May 2015

Department of Jobs, Enterprise and Innovation

Small and Medium Enterprises Supports

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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170. To ask the Minister for Jobs, Enterprise and Innovation if the concept of vouchers for new start-ups and entrepreneurs, which would provide financial assistance and business advice in the early start-up phase, has been explored; and if he will make a statement on the matter. [19259/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Enterprise Ireland is the 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 offers a range of financial and non-financial supports to assist clients through all stages of the business development cycle. As a first step towards innovation and collaboration with Higher Education Institutes companies can avail of €5,000 Innovation Vouchers which are designed to build links between Ireland's public knowledge providers and small businesses and are helping to create a cultural shift in the small business community's approach to innovation. The Innovation Vouchers initiative is open to all small and medium-sized limited companies registered in Ireland. Applications are not restricted to clients of Enterprise Ireland.

Furthermore Enterprise Ireland has introduced a Skills Voucher to support the Software Sector. The core objective is to encourage continuous capability building in core software development skills in Enterprise Ireland client companies.

This offer helps companies to free up some senior developers’ time to up-skill less experienced people in the company. This initiative is open to High Potential Start-Up clients and other small and medium companies and funding of a maximum of €5,000 is available.

In 2014, the Government reformed the structure of State supports for micro and small enterprises by establishing the Local Enterprise Offices (LEOs). Establishing the LEOs as a first stop shop for start-ups, micro-enterprises and small businesses means that entrepreneurs have one central place to go where they can get information and assistance in identifying and accessing all available supports, such as financial supports or “soft” supports, such as training and mentoring. Start-ups in particular can obtain training and business advice on all aspects of running and developing a business.

Financial supports available from the LEOs to all micro-enterprises include online trading vouchers for enterprises that want to establish an online presence for the first time. The online trading vouchers are offered to LEO clients on behalf of the Department of Communications, Energy and Natural Resources.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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171. To ask the Minister for Jobs, Enterprise and Innovation if he has considered treating micro-enterprises as distinct from the small and medium enterprise group; and if he will make a statement on the matter. [19261/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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In 2014 the Government reformed the structure of State supports for micro and small enterprises by establishing the Local Enterprise Offices (LEOs). This reform was undertaken to provide an enhanced structure offering easy local access to all Government supports for micro and small business in one location. Establishing the LEOs as a first stop shop for start-ups, micro-enterprises and small businesses means that entrepreneurs have one central place to go where they can get information and assistance in identifying and accessing all available supports, such as financial supports or “soft” supports, such as training and mentoring. Start-ups in particular can obtain training and business advice on all aspects of running and developing a business. The majority of businesses that access LEO support are from within the micro-enterprise sector.

While enterprises larger than micro enterprises can access soft supports from the LEOs the suite of LEO financial supports are available only to micro-enterprises i.e. those with fewer than 10 employees. This is in line with the EU definition of micro-enterprises as enterprises that employ fewer than 10 persons and whose annual turnover or annual balance sheet total does not exceed €2m.

In addition Microfinance Ireland (MFI), as a not-for-profit lender, has been established to deliver the Government’s Microenterprise Loan Fun. While all business sectors are eligible to apply to MFI it’s services are confined to the micro enterprise sector.

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