Louise O'Reilly (Dublin Fingal, Sinn Fein)
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141. To ask the Minister for Enterprise, Trade and Employment the current rate of basic level digital intensity of Irish SMEs. [13034/23]

Dara Calleary (Mayo, Fianna Fail)
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Embracing digital technologies is crucial for our continued economic growth and productivity as well as contributing to climate action. A competitive, innovative and resilient enterprise base is essential to provide high-quality jobs and employment opportunities.

As outlined in the National Digital Strategy and the White Paper on Enterprise, our objective is that at least 90% of our SMEs will reach at least a basic level of digital intensity by 2030. We also want at least 75% of enterprises to be using cloud, AI and big data by 2030.

According to the European Commission's 2022 Digital Economy and Society Index, Ireland is ranked fifth in the EU with 64% of Irish SMEs having a basic level of digital intensity. This is higher than the EU average of 55%. We are determined to continue to increase the level of digital intensity in enterprises.

The Digital Intensity Index (DII) is a composite indicator measured by the European Commission. It is derived from the survey on ICT usage and e-commerce in enterprises. With each of the 12 included variables having a score of 1 point, the DII distinguishes four levels of digital intensity for each enterprise: count of 0 to 3 points entails a very low level of digital intensity, 4 to 6 – low, 7 to 9 – high and 10 to 12 points – very high. A basic level entails the use of at least four of twelve selected digital technologies. The DII composition varies between different survey years, depending on the questions included in the survey.

To boost the uptake of digital technology in enterprises, in 2022, Government established the Digital Transition Fund as part of Ireland's NRRP. This is an €85 million multi-annual fund which will run until 2026. Through the Digital Transition Fund, we will increase digitalisation of all businesses across products, processes, supply chains and business models. This will bring about productivity gains, access to new markets, increased innovation and improved competitiveness as well as increases in digital intensity.

In addition, a new Digital Portal is being developed to help businesses to self-assess their digital needs as well as signposting to training, resources, and funding option. The Digital Portal will set out the key benefits of digital for businesses, signpost to supports, and assist businesses on the digital adoption journey.

Louise O'Reilly (Dublin Fingal, Sinn Fein)
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142. To ask the Minister for Enterprise, Trade and Employment the percentage of Irish SMEs currently exporting across borders; if he will provide a breakdown by sector; the policy plans and funding supports that are in place to increase this number; and if he will make a statement on the matter. [13035/23]

Neale Richmond (Dublin Rathdown, Fine Gael)
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In the recently published White Paper on Enterprise the Government has set a target of an additional 2,000 exporters. This target arose from the 2019 OECD report: SME and Entrepreneurship Policy in Ireland which found that 6.3% of firms in Ireland were exporters and was substantially lower than some other member states.

Ireland’s position as a small economy, means that Irish enterprise realising opportunities on global markets is essential for our economic prosperity. Considerable progress has been made on the market and sectoral diversification of Irish enterprise.

Market diversification is critical to underpin sustainable company growth. Enterprise Ireland helps companies to make strategic decisions and realise export growth opportunities in near and mature markets, or high growth markets, considering the company’s stage of export development and product or service offering.

Exports of Enterprise Clients in 2021 were €27.292bn, of which Food sector accounted for €12.9bn, Industrial Sector accounted for €9.8bn and the Internationally Traded Software & Services sector accounted for almost €4.6bn.

Enterprise Ireland client companies ABR return shows 81% recorded an export sale in 2021. The breakdown of returns from export clients by sector is as follows:

Food – 76% of clients recorded an export, 79% of Industrial clients recorded an export and 80% of ICT companies recorded an export.

The Department will work with Enterprise Ireland and the Local Enterprise Offices to develop a joint EI – LEO exporter accelerator model in line with the Departments White Paper on Enterprise.

Achieving strong and sustained growth in international markets is fundamental to the performance of Irish enterprise. Enterprise Ireland will assist enterprises to take a strategic approach to their international growth plans by -

- Assisting enterprises to take a strategic and planned approach to their international growth, providing capability building measures (sales and marketing, pricing, talent attraction), market intelligence, and in-market advice.

Supports Include - International Selling Programme, Enterprise Ireland’s Market Research Centre, Enterprise Ireland’s International Office Network

- Building digital sales and marketing capability in enterprises, to maximise growth in sales via global (online) marketplaces, embracing digital as a key export growth enabler for Irish enterprise.

Supports Include - Digital Export Labs with Enterprise Ireland and Meta (Facebook), Enterprise Ireland’s Digital Marketing Unit

- Delivering a comprehensive programme of in-market and online engagement and showcase activities, including trade missions, client-buyer engagements, and increased leveraging of Irish Advantage and Global Ambition platforms.

Supports Include- St. Patrick’s Day with Trade Events Worldwide, International Markets Week, irishadvantage.com - Targeting increased export diversification, building upon the coordinated measures delivered under the Enter the Eurozone programme, and through identifying and realising future market opportunities.

Supports Include – Tailored financial support packages designed to a specific companies’ requirements, financial supports can be facilitated to support employment creation, capital equipment investments, strategic consultancy costs and other supports where expenditure is compliant with State Aid regulations.

Working with my Department, Enterprise Ireland’s new Strategy incorporates the extension of the Local Enterprise Offices mandate, based on a framework developed by EI, which will allow the LEOs to provide direct financial grant aid to firms operating in the manufacturing and internationally traded services sectors to build their export capability. This pilot framework opens up existing LEO programmes to clients with up to 50 employees.

The Local Enterprise Offices are a “first-stop-shop” for providing advice and guidance, financial assistance and business and management development programmes such as training and mentoring to those wishing to start or grow their own business. These programmes promote entrepreneurship, foster start-ups and help companies to prepare and start their export journey.

Supports include- The Technical Assistance for Micro Exporters (TAME) grant enables clients to explore and develop new market opportunities. The TAME grant part-funds the costs that can be incurred investigating and researching export markets, e.g. exhibiting at Trade Fairs, preparing marketing material and developing websites specifically targeting overseas markets. The TAME grant covers 50% of eligible costs (net of vat) to a max of €2,500 in any calendar year.