Bernard Durkan (Kildare North, Fine Gael)
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113. To ask the Minister for Jobs, Enterprise and Innovation the extent to which he expects job opportunities to arise through small and medium sized enterprises, and the extent of specific incentives available to that sector, based on the experience of the past four and a half years; and if he will make a statement on the matter. [42247/15]

Richard Bruton (Dublin North Central, Fine Gael)
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Our focus on enterprise growth and SMEs in particular in Action Plan for Jobs is having a positive impact. The role of SMEs in job creation can hardly be overstated, as we know from research by the Central Bank that two-thirds of new jobs are created by firms in the their first five years. It is in this context that we have placed a key focus on promoting entrepreneurship and scaling of businesses in manufacturing and services sectors at the heart of the Action Plan for Jobs. As of Q3 2015, there were an additional 135,800 at work in the economy since the launch of the first Action Plan for Jobs in 2012, which achieved and exceeded the Government’s target of 100,000 extra at work by 2016.

The 2015 Action Plan for Jobs sets out a comprehensive range of measures to support entrepreneurship, SMEs and the self-employed in the areas of education and research, business environment and supports, innovation and access to finance, networks and mentoring; and, access to markets. Increasing entrepreneurial activity is a Disruptive Reform in the Action Plan for Jobs for 2015. Our key priority is driving implementation of the actions in the National Entrepreneurship Statement, which was published in October 2014 and to achieve the ambitions targets set out for a 25% increase in the number of start-ups and in the scaling and sustainability of new enterprises.

The launch of the Local Enterprise Offices (LEOs) was a major reform delivered in 2014. In 2015 the LEOs will have ambitious and robust county strategies and targets for start-ups, enterprise engagements and supports to be effective first-stop-shops for enterprise information and supports and launch an Entrepreneur Partnering Programme.

In 2014 I launched the awards programme for Ireland’s Best Young Entrepreneur and I am pleased to report that we are in the final stages of the judging for the 2015 awards.

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 also continues to support the development of the Seed and Venture Capital and Business Angel sectors to increase the provision of early stage funding to support entrepreneurs and early stage companies.

We have continued to improve the attractiveness of the tax environment for start-ups and SMEs as part of Budget 2016. The Start-Up Refund for Entrepreneurs scheme was announced in 2016, the rate of capital gains tax for entrepreneurs was reduced to 20% and the exemption from corporate tax for the first three years of a business was also extended. We have improved access to finance through a range of initiatives including the establishment of Microfinance Ireland, the introduction of the Credit Guarantee Scheme and increased support through Enterprise Ireland for seed and venture funds. The launch of a range of funding initiatives by the Strategic Banking Corporation of Ireland (SBCI) and the new Regional Action Plans for Jobs will also have a particular focus on the environment for start-ups. We are also continuing to supporting the tourism sector with retention of 9% VAT rate.