Dáil Éireann Debate, Thursday - 26 April 2012
9Deputy Willie O’Dea asked the Minister for Jobs; Enterprise and Innovation the progress that he has made on item 3.3 of the action plan for jobs particularly developing a mentoring programme for businesses and the adoption of small and medium enterprises by multinational corporations; and if he will make a statement on the matter. [20915/12]
Amharc ar fhreagraMentoring has traditionally formed part of the suite of supports offered by Enterprise Ireland to its client companies. The existing mentor network, which is refreshed regularly, was established to help companies identify and overcome obstacles to growth, provide guidance and support and build management capability. Mentors are senior executives, drawn from the private sector, with a proven track record in business. They act as a confidential sounding board, advising companies on key operational and strategic issues.
A mentoring assignment consists of ten visits over 12 months. Companies choose mentors from a short-list with relevant experience. The goals and objectives are jointly agreed at the start of the assignment. Mentors sign a strict confidentiality agreement with Enterprise Ireland. Enterprise Ireland currently has 291 active mentors on its mentor network nationally.
On foot of the action plan for jobs, and building on the existing mentor offering, Enterprise Ireland has commenced development of an international mentor-adviser programme. This involved targeting a survey at potential domestic and overseas mentors including those in the Global Irish Network, GIN. By the closing date of 18 April, 100 responses had been received, which indicates a great willingness on the part of GIN members to assist companies in developing their business strategy and making introductions. At the end of this scoping exercise, Enterprise Ireland will roll out a pilot programme.
The Enterprise Ireland and IDA senior management team meeting took place this week and examination of the issue of the adoption of SMEs by multinationals has begun.
I raised this question because the proposal in the action plan is designed to help the indigenous sector, particularly small and medium-sized enterprises, SMEs. The Minister of State referred to a pilot scheme for the mentoring programme. When does he envisage the system will be properly put in place?
Currently, there are 291 mentors in the domestic economy.
Yes, but that is an informal system.
There is a scoping exercise going on with collaboration between Enterprise Ireland and IDA Ireland on identifying the capabilities of the 100 companies that applied for the programme. I believe it is a unique opportunity.
The second part of the Deputy's question concerned small companies mentoring with larger multinationals for business development. We are confident that many of the Irish multinationals are prepared to examine how best they can encourage HPSUs, high potential start-ups, and focus on growing business in supply chains.
Will a formal system be put in place to link up these multinationals?
Enterprise Ireland and IDA Ireland will come back with a clear plan of action for the mentoring and networking supports for smaller companies. This will be in the review of the action plan for jobs. It is important we do not just pay lip-service to this. There is much potential with mentors from across the globe offering their services, as well as their contacts bases. There is immense potential this year to add jobs through encouraging indigenous HPSUs to grow their businesses and expand into export markets.
The Minister, Deputy Bruton, has targeted 1,800 new companies to encourage them to export. Multinationals will work with that cohort to expand their business through export-led growth, which is the way to create jobs.
It is estimated that multinationals in Ireland source approximately 15% of their materials in this country whereas the figure in Europe is 80% on average. Not all of the materials needed by multinationals are available in Ireland, but would it be possible to pressure them to source more materials in this country? That would filter into the domestic economy and be a great help.
Many Irish companies are also using international supply chains. I understand Deputy Wallace's point about growing capable, indigenous companies. Multinationals' domestic demand depends on timeframes and companies' ability to supply them. The Taoiseach is determined to examine the €14 billion that is spent annually on public procurement in terms of small to medium-sized enterprises, SMEs, and the rest of the private sector. We can create opportunities for SMEs to participate in the procurement process. A number of seminars were held across the region so that buyers could meet and agree contracts with potential customers.
The IDA is anxious to ensure multinationals do more business with SMEs that have the capacity to supply them. The Government would encourage such a development, as it would also create indirect jobs. IDA companies employ 140,000 people and one indirect job is created for every direct job. The same applies in the case of the 135,000 people working in Enterprise Ireland companies. This is a factor to consider when supplying to multinationals.
I thank Deputies for their questions and the Minister and Minster of State for their replies. I thank the staff of the Oireachtas for their attendance.
Written Answers follow Adjournment.
The Dáil adjourned at 8.05 p.m. until 2 p.m. on Tuesday, 1 May 2012.
