Thomas Pringle (Donegal, Independent)
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1185. To ask the Minister for Jobs, Enterprise and Innovation if she will restructure indigenous enterprise policy to include all types of firms and all sectors including import and export, rural and urban with a specific focus on developing small business viewing them with the potential of becoming exporters into the future; and if she will make a statement on the matter. [10399/16]

Thomas Pringle (Donegal, Independent)
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1187. To ask the Minister for Jobs, Enterprise and Innovation if she will establish an agency, similar to that of IDA Ireland, for the development of small businesses in Ireland given that small businesses employ nearly 1 million persons or over 70% of the private sector in Ireland with potential to employ many more if expansion was adequately supported; and if she will make a statement on the matter. [10401/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I propose to take Questions Nos. 1185 and 1187 together.

The Government is acutely aware of the importance of the small business sector and its potential for generating employment and our Programme for Government fully recognises this fact. Since 2011, the Government has launched a range of measures to improve the competitiveness of the economy, to provide a range of supports for the start-up and growth of small business, to reduce red tape and other costs, and to get credit to good businesses to support the maintenance of existing jobs and the creation of new ones.

These measures, across a range of policy areas and agencies, are captured in the Annual Action Plan for Jobs, which ensures a consistent and comprehensive approach to supporting business development.

The newly launched Regional Action Plans will ensure that at local level, all of the necessary supports are available to encourage new business start-ups and development and that job creation is spread evenly across the country.

In one particularly acute area of policy – namely the ability of small businesses to access finance – we have introduced a number of measures in recent years notably the SME Credit Guarantee Scheme and Microfinance Ireland.

We will continue to listen to the needs of small business through the Small business Advisory Group, as well as the Retail Forum, both of which are chaired by my Department.

As a small open economy, sustainable long term economic growth is dependent on continued success in international markets. Our policy focus is on export led growth in the first instance, driven by innovation, competitiveness and productivity.

We know from the progress achieved in restructuring the economy since 2011 that a competitive export-led enterprise base is at the heart of Ireland’s longer term economic growth prospects. The potential to reach 2.180 million in employment by 2020 is based on the premise of export-led growth and would see an additional 266,000 people at work from a 2014 base. Our strategy is to build up all sectors in the economy and to ensure that progress is balanced across the country. With limited financial resources, it is also important that our strategic interventions and supports have a particular focus on deriving the maximum impact and national economic value. We must minimise the risks of investing in deadweight projects that would have happened in any event and in the displacement of one business with another.

The Government’s role is to create the right conditions needed for sustainable, rebalanced economic growth. Markets can’t function without impartial regulation and enforcement of contracts, effective competition policy and the rule of law. So our role is about providing leadership and setting direction, setting the right policy frameworks and investing selectively. Government also provides direct supports to businesses that meet the necessary criteria but grants are only available to enterprises with the capacity to export. This has always been an important policy principle which shall remain.

Since the 1990’s it has been acknowledged that the attraction of foreign direct investment must be complimented by a clear national effort to develop and grow our own domestic base of exporting companies and to develop clear national advantage in key sectors of strength. We will compete by increasing productivity, by developing higher-end products and services, and by being the first to tap into new niche markets.

Our indigenous enterprise policy is focused on supporting a greater number of start-ups with better survival rates, more Irish owned companies of scale, more companies increasing their investment in research, development and innovation to boost their competitiveness, and more enterprises exporting across a range of markets. The challenge of the new Government is to prioritise where we will place further efforts to best effect over the coming years - so that we continue to achieve positive results and make a difference to our enterprise sector.

Enterprise Ireland is the body charged with developing the indigenous exporting company base. With an annual budget of €300m EI provides direct grants to business and takes equity in start-ups with potential. It supports management capability and innovation in companies that want to grow, supports the provision of seed and venture capital to enable more high quality start-ups to expand and it invests in the R&D capability in third-level colleges and the commercialisation of research.

We have a narrow base of exporters and not enough Irish firms growing internationally. We have endeavoured to align our policies and invest in those areas that will support longer term sustainable enterprise growth and stability. These policies are working well. Export intensity in Irish owned enterprises has increased from levels of 37% of total sales in 2003 to 51% in 2014, showing continued improvements in our indigenous firm capacity, capabilities and competitiveness. Enterprise Ireland has in recent years established a Potential Exporters Division to help Irish companies to look outside the domestic market.

Another major policy initiative in recent years has been the creation of the Local Enterprise Offices as the ‘first stop shop’ service for all entrepreneurs and micro- businesses. LEOs can offer information and advice on setting up or expanding a business, including the variety of supports available. They can offer ‘soft supports’ in the form of training or mentoring and in certain circumstances can offer financial support or referral to Microfinance Ireland loans.

Finally, I should mention that the range of supports to budding entrepreneurs and small businesses are available via the online Supporting SMEs Toolkit which can be accessed at .