Written Answers. - Small Business Support.
Liam Aylward
Question:
57
Mr. Aylward
asked the
Tánaiste
and Minister for Enterprise, Trade and Employment the schemes available within her Department to assist and support small businesses who have the potential to create extra employment.
[8489/98]
The following Schedule sets out the schemes available within my Department to assist and support small business with the potential to create extra employment.
Schedule
Small Business Operational Programme
A range of initiatives under the EU Small Business Operational Programme is available to assist small businesses, viz.
Measure 1 — Access to Finance Scheme.
This is by far the largest of the measures and provides a fixed interest subsidy on business loans of seven years duration involving amounts ranging from £20,000 to £500,000. A fund of £208 million was established which was fully subscribed by 31 December 1996.
Measure 2 — Access to Public Markets.
This measure is designed to assist small firms gain a greater share of the public procurement market. A team of six public procurement specialists has been appointed to provide an advisory service to small firms on procurement opportunities within the public sector and to provide information on issues such as tendering procedures. The team also works closely with public sector buyers to identify opportunities for small business.
Measure 3 — Adaptation and Development of Services Firms.
This measure is designed to provide assistance to improve the strategic and business organisation of new and existing services firms and to facilitate their access to new markets. Priority is given to firms in newly emerging growth sectors. This measure is operated by Forbairt.
Measure 4 — Small Business Best Practice Manuals.
This measure aims to address the knowledge gap identified as a problem for small enterprise through the development of best practice manuals and identification of innovative methods of information dissemination. A "How To Guide" entitled "Starting Your Own Business" was launched in January 1998. This is available priced £10 from County Enterprise Boards, Area Partnerships, Business Innovation Centres and the Government Publications Sales Office.
Measure 5 — Pilot Training Projects.
This measure involves the fostering of 11 innovative pilot training projects concerned with the improvement of know-how and the business environment. All available funding under this measure was fully committed in 1996.
County Enterprise Boards.
The 35 City and County Enterprise Boards (CEBs) were established in 1993 to support the development of micro-enterprise throughout the country through a range of activities, including direct and indirect enterprise supports for such enterprises.
The boards are cofinanced by the Exchequer and by the European Union under Sub-Programme 1 of the Operational Programme for Local Urban and Rural Development, 1994-99. Sub-Programme 1 is divided into four measures, which cover the preparation of enterprise plans and the development of an enterprise culture, Measure 1; advice, information, counselling and mentoring, Measure 2; financial assistance, Measure 3; and management development assistance, Measure 4.
Measures 1, 2 and 4 are forms of indirect financial assistance, commonly referred to as "soft supports". Measure 3 constitutes direct financial assistance in the form of grants and equity support.
Forbairt
The development needs of small businesses are essentially common across sectors and, as a result, Forbairt's information, education and technology based activities and services are available to all companies irrespective of size or sector. Forbairt also administers and manages, on behalf of the office of science and technology, a wide range of EU programmes including the 4th Framework, measure 1, the Industry Research and Development Initiative, and Retex. Forbairt works closely with the third level sector to enhance its linkages with Irish industry.
In its direct funding activities, Forbairt has national responsibility for stimulating the development of Irish manufacturing and internationally traded companies together with all — Irish and overseas — natural resources based companies. Within this overall framework, Forbairt places a particular emphasis on promoting the development of the small business sector. Forbairt's direct funding programmes are primarily directed at start-up small businesses with potential to employ more than ten people, together with high potential start ups — companies which have less than ten employees, but which have the potential to grow rapidly — and Forbairt's client base of existing small companies. Funding for smaller businesses, essentially micro businesses, comes within the ambit of the county enterprise boards.
In stimulating small industry development Forbairt works to provide direct financial support to help start-up companies and established small businesses to grow employment, expand capacity and grow profitable sales: assistance typically takes the form of employment grants. In addition to grants, Forbairt can provide preference share capital and/or invest in ordinary share capital.
It also helps companies to enhance their capability and become more competitive by providing an individually tailored range of information and consultancy products, of an advisory, technical and business nature; supports include grants to help pay for the cost of business strategy reviews, feasibility studies, product development programmes, introduction of world class manufacturing as well as the recruitment of key technical and managerial staff.
The following programmes are provided: the management development programme provides funding to companies that want to recruit new management skills into a company or to employ a consultant to undertake a strategic review; the mentor programme provides support to companies which require advice on specific challenges facing the company. Experienced business professionals are placed in small companies to help the enterprise to address those issues; the national linkage programme run by Forbairt, works with small businesses to maximise the level of raw materials, components and services sourced in Ireland by multinational companies; the world class manufacturing scheme provides support to companies which employ consultants to assist them to introduce more competitive manufacturing techniques. The programme also supports training for company staff; the Forbairt information services and enterprise link — an initiative of the Department of Enterprise, Trade and Employment, which is managed by Forbairt — provide library and phone line services for entrepreneurs and businesses aiming to expand; the learning centre at Forbairt provides technical and business educational seminars, conferences and workshops for Irish small businesses; Forbairt's graduate placement programme offers a practical way of introducing new skills into small companies. Graduates placed in small businesses contribute to the development of language, information and other technology skills in those businesses; under the techman/tecstart programme, which is operated in conjunction with the Office of Science and Technology, Forbairt assists small companies to become more focused on technology issues and to introduce new skills in the company by funding the cost of employing technical graduates and managers; as part of its ongoing support to Irish business, Forbairt's management consultancy services provide technology audits and technology assessments to companies; the seed and venture capital scheme managed by Forbairt and funded by the European Union has, in the past year, supported high potential start ups and expansions with one venture capital fund specifically supporting small enterprises; the graduate enterprise programme is a one year rapid incubation programme designed to provide a comprehensive business development and financial support to third level graduates who wish to start their own small businesses support. This is operated in conjunction with Waterford Institute of Technology; the Office of Science and Technology, in co-operation with Forbairt, provides funding and support for the research and development effort in Irish small business; the National Research Support Fund Board oversees joint industry-third level collaborative projects under the basic, strategic and applied research grant schemes, as well as research and industry scholarship programmes; Forbairt's Campus Companies Programme was set up to assist academics to commercialise R&D projects; Forbairt actively promotes participation by Irish companies in the various calls for proposals in EU research contracts; the research, technology and innovation initiative, which is operated in co-operation with the Office of Science and Technology, encourages companies of all sizes to become more involved in research and development projects. This programme is funded by the European Union; the R&D management scheme, which is operated in conjunction with the Office of Science and Technology, is designed to provide a range of support to companies that require support to implement their research and development programmes. This programme is funded by the European Union.
An Bord Tráchtála
Programme for New and Emerging Exporters
This programme addresses the individual needs of potential and new exporters through specialist workshops covering all aspects of preparing for successful exporting. This is complemented by intensive hands-on assistance from experienced Irish Trade Board staff. They can call on all appropriate resources of the organisation to help companies achieve its targets through an agreed action plan.
A strong market position in Ireland gives a better foundation for profitable exporting. ABT's Ireland Market Team, based in Dublin, helps companies to grow sales to multinationals and international retailers in Ireland, North and South.
ABT's design and product development programme helps companies to create and launch new market-adapted products for export markets.
Limited non-repayable grants may be offered, subject to budget availability, to companies with total exports of less than £1 million who are planning new initiatives with substantial growth potential. Eligible companies may apply each year, for a maximum of three years, for support towards 50 per cent of the eligible expenditure detailed in an agreed marketing plan. Innovation and realistic growth potential are the key criteria for winning this financial support.
FÁS Training Support Scheme
The training support scheme is the principal FÁS programme aimed at assisting business and those in employment. The TSS enables Irish small and medium enterprises to increase competitiveness, quality and productivity in national and international markets. The scheme specifically seeks to improve the skills of employees at all levels — from the shop floor to management — by providing financial assistance to enable firms to train and develop their staff.
The scheme is open to firms in the following sectors of industry: clothing, footwear and textiles; chemical and allied products; construction — Manufacturing; engineering; food, drink and tobacco; motor; printing and paper; physical distribution; internationally traded services; wholesale and retail distribution; non-manufacturing construction firms who trade internationally; and contract cleaning.
Evidence must be produced that the training need has been clearly identified and that this development is linked to a business plan or strategy, using the firm development and training plan framework.
The relevant level of training grants for small business is as follows: 80 per cent of programme costs are available to firms employing 20 staff or less; and 65 per cent of programme costs are available to firms employing 21 to 50 staff.
Company Development Cluster Programme
This programme provides a panel of specialists, for example, finance, marketing, production and quality control to small firms to improve management skills, with the prime objective of improving competitiveness and profitability.
Management Development Programme
This programme provides expertise in the areas of management information systems, business planning and strategic planning.
Jobstart
Jobstart is a recruitment subsidy scheme aimed at enticing employers to fill new or existing vacancies with a long-term unemployed person. The overall thrust of the scheme is to increase the proportion of jobs in the economy filled by those unemployed for three years or more against a background where such persons are often by-passed in job selection. Under the scheme, a subsidy of £80 per week for one year, is paid to employers in respect of each eligible employee.
Workplace
The aim of workplace is to prevent the drift into long-term unemployment by bringing together, employers and persons who are unemployed for six months or more, for a five week trial period with no strings attached on either side. During this period an unemployed person retains their previous social welfare entitlement and status and receives a top up allowance towards the cost of travel and meals.
Shannon Development
Shannon Development is the Regional Development Agency responsible for development in the Shannon region, comprising Counties Limerick, Clare, North Tipperary and South-west Offaly and North Kerry. Shannon Development offers grants and other assistance to businesses in the Shannon region, broadly in line with the assistance available nationally from Forbairt. Shannon Development provides the following programmes:
Grant-in-aid funded programmes include fixed asset (capital grants), equity (ordinary/ preference shares), employment grants, management development grants, training grants, technology acquisition grants. R&D grants including feasibility studies, graduate placement schemes, excluding techstart-techman), MENTOR programme, environmental audit scheme, technology MENTOR scheme, construction technology capability grant scheme, graduate enterprise programme, business partnership programme, interest subsidy, rent subsidy, loan guarantees, feasibility studies, product and process development, and sites grant.
Programmes funded by third parties include industry R&D initiative for non-food companies, industry R&D initiative for food companies, research technology and innovation initiative, technology transfer, change programme, FEOGA for food sector, adaptation and development of services firms, small business operational programme measure 3, seed and venture capital, RTD management development, measure 3, and campus companies programme
