Dáil Éireann Debate, Tuesday - 21 July 2020
79. Deputy Sorca Clarke asked the Minister for Communications, Climate Action and Environment the eligibility terms and conditions applicable for businesses that apply from 7 April to 30 September 2020 in relation to the local enterprise office trading online voucher scheme. [17064/20]
View answerThe Trading Online Voucher Scheme is managed by my Department and delivered nationwide in partnership with the Department of Enterprise, Trade and Employment, the Department of Media, Tourism, Arts, Culture, Sport and the Gaeltacht, Enterprise Ireland, the 31 Local Enterprise Offices and Údarás na Gaeltachta. The Scheme offers advice and peer-to-peer support and a grant of up to €2,500 to help small and micro-businesses to develop their ecommerce capability.
The Scheme was launched nationally in mid-2014. By end 2019, some 6,400 small and micro businesses had completed, or were in the process of completing their trading online projects. In addition, 19,000 or so business owners-managers had benefitted from advice and peer-to-peer support through their participation in the information seminars delivered by the Local Enterprise Offices under the Scheme.
In response to Covid-19, funding for the Scheme in 2020 was increased from €2.3m to €19.8m, and new flexibilities were introduced including reducing the requirement for co-funding from 50% to 10% and allowing businesses to apply for a second voucher of up to €2,500 where they have successfully utilised their first one.
Small and micro-businesses with the following profile are eligible to apply for a voucher under the Scheme:
- Limited or no Online Trading presence;
- 10 or less employees;
- Turnover less than €2m;
- The applicant business has been trading for at least 6 months; and
- The applicant business is located in the area covered by the LEO to whom they make their application
The principal terms of the Scheme are as follows:
- Vouchers will be available to a maximum value of €2,500 or 90% of eligible costs, whichever is the lesser;
- Voucher approval must be gained prior to incurring any cost;
- Only third party costs will be considered;
- Claims can be made in either one or two instalments, and only made in respect of actual work completed;
- All applications must be accompanied by quotes from three suppliers for the project.
Vouchers can be used for:
- IT consultation;
- Development or upgrade of an e-commerce website;
- Implementing Online payments or booking systems;
- Purchase of Internet related software;
- Developing an app or multiplatform webpages;
- Development of a digital marketing strategy;
- Implementing a digital marketing strategy;
- Skills development specifically to establish and manage an online trading activity;
- Subscriptions to low cost online retail platform solutions, which would allow applicants to quickly establish a retailing presence online;
- Limited purchase of online advertising; and
- Limited purchase of professional photography.
Selection of successful applicants is based on the following criteria:
- Eligibility for scheme;
- Value added potential;
- Export potential;
- Job creation potential;
- How will the project aid the business during the COVID-19 Pandemic; and
- Financial sustainability.
The following are ineligible under the Scheme:
- Companies with charitable status, commercial semi-state companies, trade associations and company representation bodies;
- “Not for profit” and social entrepreneurship applicants unless they operate in a commercial domain;
- Professional services specialising in IT type services who are already capable of trading online using existing in-house systems;
- Conferences and Seminars;
- Projects which are contrary to public policy;
- Duplication of support for projects which would be eligible for assistance from other State Agencies or EU funded Operational Programmes;
- Projects deemed to be capable of proceeding in any event without Scheme assistance;
- Projects essentially comprising importation and distribution; and
- Development of brochure websites.
