Dáil Éireann Debate, Wednesday - 15 July 2015
116. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he continues to be in a position to encourage and facilitate job creation through the aegis of small and medium sized enterprises in the manufacturing and services sectors in the next 12 months; the degree to which current indicators remain positive in this regard; and if he will make a statement on the matter. [29283/15]
View answerSmall and medium enterprises (SMEs) across all sectors of the economy are central to Government’s objective of creating sustainable full employment and to ensuring that all our people have the opportunity to engage in rewarding and well paid employment. The role of SMEs in job creation can hardly be overstated, as we know from research by the Central Bank that two-thirds of new jobs are created by firms in the their first five years. It is in this context that we have placed a key focus on promoting entrepreneurship and scaling of businesses in manufacturing and services sectors at the heart of the Action Plan for Jobs.
This focus on entrepreneurship and SMEs in Action Plan for Jobs is having a positive impact. As of Q1 2015, there were an additional 104,00 at work in the economy since the launch of the first Action Plan for Jobs in 2012, which achieved and exceeded the Government’s target of 100,000 extra at work by 2016. The services sector made the largest contribution to the achievement of the Government’s target of 100,000 more at work. Following a number of years of decline in employment from 2007, the manufacturing sector has also recorded increases in job numbers since 2011.
To achieve our ambition of sustainable full employment, jobs growth in export oriented manufacturing and services SMEs will be essential over the next twelve months and beyond. The 2015 Action Plan for Jobs sets out a comprehensive range of measures to support entrepreneurship, SMEs and the self-employed in the areas of education and research, business environment and supports, innovation and access to finance, networks and mentoring; and, access to markets. Increasing entrepreneurial activity is a Disruptive Reform in the Action Plan for Jobs for 2015. Our key priority is driving implementation of the actions in the National Entrepreneurship Statement, which was published in October last year and to achieve the ambitions targets set out for a 25% increase in the number of start-ups and in the scaling and sustainability of new enterprises.
The launch of the Local Enterprise Offices (LEOs) was a major reform delivered in 2014 and the clients of the LEOs increased employment by 4,012 last year to 31,326 jobs throughout the country. In 2015 the LEOs will have ambitious and robust county strategies and targets for start-ups, enterprise engagements and supports to be effective first-stop-shops for enterprise information and supports and launch an Entrepreneur Partnering Programme.
My Department through its agencies will build on the 2014 success of the awards programmes such as Ireland’s Best Young Entrepreneur with a renewed programme for 2015.
Enterprise Ireland works to increase the number of companies starting-up, succeeding, expanding, exporting and ultimately creating jobs in Ireland. EI’s support system for young companies includes help with business planning, mentoring and development advice, feasibility funding and finance, often in the form of equity investment, as appropriate to the founder’s ambitions and the company’s potential and stage of growth. Enterprise Ireland has set itself an ambitious target of 550 new and early start-ups supported by 2016. Enterprise Ireland also continues to support the development of the Seed and Venture Capital and Business Angel sectors to increase the provision of early stage funding to support entrepreneurs and early stage companies.
The launch of the simplified Startup Refunds for Entrepreneurs Scheme (SURE) in 2015 will provide additional finance for entrepreneurs. In many cases the lack of a first reference sale is a key barrier to accessing funding at an early stage. Early intervention through entrepreneur development programmes such as New Frontiers and others workshops and accelerator programmes helps companies accelerate their business development and to build up the skills and contacts needed to successfully start and grow. EI will support 130 new Entrepreneurs via the New Frontiers programme in 2015.
A range of agricultural related measures are being implemented including steps to maximise available agricultural land with measures to encourage long term leasing. We are also continuing to supporting the tourism sector with retention of 9% VAT rate
