As the Deputy will be aware, the current role of the County and City Enterprise Boards (CEBs) is to provide support for micro-enterprises in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential, and to stimulate economic activity and entrepreneurship at local level. Priority is given to enterprises in the manufacturing or internationally traded services sector, and any potential for deadweight and displacement arising from the provision of assistance to a proposed enterprise is also taken into account.
When the CEBs are dissolved, the exchequer funding allocation will be delivered by the Local Enterprise Offices (LEOs) within Local Authorities and overseen by Enterprise Ireland. Budgets will be allocated on an annual basis under the existing Measure 1, Measure 2 and administration (pay and non-pay) headings. The funding will be monitored using the agreed Service Level Agreement (SLA) between Enterprise Ireland and each Local Authority. In accordance with the SLA, the LEOs will provide services under four headings, namely, Business Information and Advisory Services, Enterprise Support Services, Entrepreneurship Support Services and Local Enterprise Development Services. The on-going drawdown of budgets by LEOs will be contingent on reaching agreed targets. There are no immediate plans to change budget methodology, grant eligibility, or grant assistance rates.
The Exchequer allocation, as secured by my Department, will continue to be the primary source of funding for the LEOs. A total of €29.4m has been allocated for the CEBs/LEOs in 2014 and this includes an additional €3.5m which will be primarily targeted at a new initiative focussed on youth entrepreneurship and young people with a business idea who wish to start their own business.
In addition to financial supports, this fundamental reform aims to ensure that other State supports to enterprise are properly promoted and targeted. The LEOs will be the First Stop Shop for micro and small businesses for the range of supports available. The combination of the restructuring of enterprise supports and additional Exchequer funding will result in the enhancement of the support service to the sector in a variety of ways including the development of Protocols relating to information and guidance, mutual contacts, and client referrals to other key agencies such as the Department of Social Protection, Revenue, Microfinance Ireland, Skillnets, etc.
In short, the LEOs will engage with all business ideas with the objective of providing information, guidance or support (financial and non-financial), as appropriate.
