Richard Bruton (Dublin Bay North, Fine Gael)
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32. To ask the Minister for Enterprise, Trade and Employment if he has evaluated the environment for entrepreneurship and the rate of start-up activity, particularly in the areas of opportunity created by the green and the digital transformation which are altering the business models of every sector; and if he will make a statement on the matter. [30471/24]

Emer Higgins (Dublin Mid West, Fine Gael)
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The White Paper on Enterprise sets out a vision for Irish-based enterprise to succeed through competitive advantage founded on sustainability, innovation and productivity, delivering rewarding jobs and livelihoods. The first two, of seven, policy priorities set out in the White Paper are; Integrating Decarbonisation and Net-zero Commitments, and Placing Digital Transformation at the Heart of Enterprise Policy.

My Department is focused on ensuring that the environment for entrepreneurship and start-ups is geared towards enabling them to benefit from the opportunities arising from the dual transitions towards green and digital.

In terms of evaluations, my Department has recently published, under our Joint Research Framework with the ESRI, a study on entrepreneur characteristics and determinants of self-employment across Europe.

This work examined the prevalence of entrepreneurship across Europe, the type of barriers to entrepreneurship that exist and characteristics of those who become entrepreneurs. We also looked at the distinction between opportunity and necessity motivations for becoming self-employed.

My Department is also currently undertaking a study with the OECD on the role of incubators and accelerators in the internationalisation of Irish start-ups. This study is due to be finalised in the coming weeks and will help us to identify opportunities for developing and growing our start-ups and for improving the eco-system of incubator and accelerator programmes across the county.

In terms of supporting businesses with the digital and green transition, €300 million of the Department’s agreed NDP ceilings have been ringfenced to accelerate the green transition, which will give companies certainty that the Government will support them in making what are significant investment decisions, so that Ireland can achieve its 2030 carbon abatement target.

The Green Transition Fund is part of Ireland’s National Recovery and Resilience Plan (NRRP). The Fund contains a range of supports for businesses to make the green transition including: vouchers to help companies prepare a plan for the low-carbon and resource efficient economy of the future; capital support for companies to invest in decarbonising their manufacturing processes; and grants to explore the development of new or improved products, services or processes in the areas of sustainability and decarbonisation.

From its launch in June 2022 until the end of April 2024, over €11.7 million in funding was approved for approximately 359 projects under the Green Transition Fund.

Our National Digital Strategy, Harnessing Digital, aligns with EU priorities under the Digital Decade to 2030, with clear targets to drive and enable the digital transition across the economy and society.

In Ireland, we see the greater use of technology as not just important for its own sake. The digital transition has the potential to play a key part in achieving our ambitions for climate action, as well as in healthcare, education, and construction.

The benefits of digitalisation for enterprise include helping businesses remain competitive, keeping pace with technological developments, making business processes and procedure more efficient, cost savings, improving customer service, accessing new customers and markets, enhanced data security, and future proofing.

€85 million in funding is being made available to Ireland under the “Digital Transformation of Enterprise Measure” in Ireland’s National Recovery and Resilience Plan - with funds being made available to Ireland through the European Union’s Recovery and Resilience Facility (RRF).

Work is also underway on the development of the Grow Digital portal. Grow Digital will help businesses (particularly microenterprises and SMEs) to assess their digital readiness and identity recommendations and supports to take the next step towards digital transformation, including training, resources and funding options.

The Local Enterprise Offices continue to support businesses with digitalisation and decarbonisation supports, through both consultancy and capital for investment. In May of this year, the Government agreed a range of measures with the aim of reducing costs for small and medium sized businesses. As part of this package and aligned with changes outlined in the LEO Policy Statement, changes to the LEO digitalisation and decarbonisation schemes were outlined. The Digital for Business consultancy scheme will be open to all sectors up to 50 employees, and the Grow Digital Voucher will double to providing €5,000 to businesses in all sectors with up to 50 employees. The Energy Efficiency Grant will also double to €10,000, and the applicant contribution will be reduced to 25% of the project value.