Dáil Éireann Debate, Thursday - 3 June 2021
207. Deputy Anne Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment the scope for businesses (details supplied) that do not meet the staffing criteria to qualify for the online retail scheme to avail of the scheme; if there is a dispensation for such businesses; if there are alternative supports; and if he will make a statement on the matter. [30343/21]
View answerTrading online is a very important route for retail businesses to grow and improve and will be an important element in their recovery over the longer term.
The COVID-19 Online Retail Scheme - a competitive scheme, administered on my Department's behalf by Enterprise Ireland - is to support companies in the indigenous retail sector who have already started an online journey, to further enhance and strengthen their online presence, which will have the most immediate impact enabling them to respond to both domestic and international consumer demand with a competitive online offer.
My Department proposed the COVID-19 Online Retail Scheme in response to the COVID-19 crisis and the urgent need for retail companies to achieve a step change in online capability. Applicant companies must be an indigenous retailer, employing 10 or more people, have an existing online presence (eg website or social media), and have a retail outlet through which they derive the majority of their revenue. The Scheme was launched with an initial fund size of €2m. Due to significant levels of interest for the Scheme from eligible retailers and the particular challenges facing the retail sector during the pandemic, the funding available for Call 1 was increased. Under the first call 185 retailers were approved €6.6m in funding and under the second call 145 retailers were approved €5.3m in funding.
On 4 May this year, Minister of State English launched a new round of the COVID-19 Online Retail Scheme. Under this call €5 million will be made available to help Irish businesses to upgrade their websites and improve their competitiveness in online retail. The call closed on the 25 May.
I understand Minister English will be examining the future role of the Online Retail Scheme in the coming weeks, including whether its scope can be expanded.
For retailers starting on the digital journey, Enterprise Ireland have put together a Starter Guide outlining the broad range of considerations to be addressed. A copy of the guide can be found on https://www.enterprise-ireland.com/en/funding-supports/Online-Retail/Online-Retail-Scheme/
For retail businesses that fall outside the criteria of the COVID-19 Online Retail Scheme, there are many other financial and non-financial supports available. These include services offered through the Local Enterprise Offices (LEOs).
The Trading Online Voucher Scheme, administered by the LEOs, offers financial assistance of up to €2,500 with co-funding of 50% from the business along with training and advice to help businesses trade online.
Businesses that have already received a Trading Online Voucher can now apply for a second voucher, where upgrades are required. Funding can be used towards adding payment facilities or booking systems to websites or developing new apps for customers. The voucher can also be used towards subscriptions to low-cost online retail platform solutions, to help companies quickly establish a retailing presence online.
The vouchers are targeted at businesses with the following profile:
- Limited or no e-commerce presence;
- 10 or less employees;
- Turnover less than €2m;
- Applicant business must be trading for at least 6 Months**;
- Business must be located in the area covered by the LEO to whom they make their application i.e. LEOs cannot accept applications from businesses located outside their jurisdiction.
**applicant business must provide clear proof of trading for a minimum of 6 months to their Local Enterprise Office
I am committed to supporting the needs of the retail sector, through the Retail Forum, which is chaired by my colleague, Minister of State English, in developing their online capability and enhancing their competitiveness.
The wide range of supports to help businesses impacted by the COVID-19 crisis can be found on the Department’s website https://enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/
