Terence Flanagan
Ceist:214. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation if he will address a matter (details supplied) regarding small and medium-sized enterprises. [14004/15]
Amharc ar fhreagraWednesday, 15 April 2015
Ceisteanna (214)
Freagraí scríofa
According to the Central Statistics Office (CSO), the number of SMEs in Ireland in 2012 (most recent figures available) was 185,049. The numbers have been declining since the economic crisis in 2008. Self-employed workers may access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of means-tested jobseeker’s allowance they can apply for this scheme if their business ceases or if they are on low income as a result of a downturn in demand for their services.
The 2013 report of the Advisory Group on Tax and Social Welfare on extending social insurance coverage for the self-employed found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. In this context, the Group noted that almost 9 out of every 10 self-employed people who claimed jobseeker’s allowance during the three-year period from 2009 to 2011 received payment.
My Department provides a range of supports for SMEs. Since this Government came to Office in March 2011, it has worked across its various Departments and agencies to ensure that all enterprises have access to appropriate finance for both working capital and investment.
In order to assist SMEs to grow and create jobs, my Department put in place two novel credit schemes: the Microenterprise Loan Fund (managed by Micro Finance Ireland) and the Credit Guarantee Scheme to support viable enterprises, from all sectors, who have been refused bank credit. Both schemes have been the subject of review and appropriate improvements to both schemes are in train. My Department also provides a range of grants, equity and venture capital finance through its agency, Enterprise Ireland.
The Local Enterprise Office network provides a range of financial and non-financial supports to help enterprises at start-up or during business expansion phases, including acting as a gateway to accessing finance from Micro Finance Ireland (MFI), which offers support in the form of loans of up to €25,000 to start-up, newly established or growing microenterprises employing less than 10 people with viable business propositions that do not meet the conventional risk criteria applied by the banks. Applications for the Microfinance Fund should be channelled through the local LEO. Further information can be found on the LEO website at www.localenterprise.ie.
The Minister for Finance has recently established the Strategic Banking Corporation of Ireland (SBCI). The SBCI will the ensure access to flexible funding for Irish SMEs by facilitating the provision of:
- Flexible products with longer maturity and capital repayment flexibility, subject to credit approval;
- Lower cost funding to financial institutions which is passed on to SMEs; and
- Market access for new entrants to the SME lending market, creating real competition.
Further information on cross-Government initiative to help enterprises, entrepreneurs and start-ups may be found on the Supporting SMEs Online Tool at www.actionplanforjobs.ie.
Other recent supports for SMEs include changes to the Seed Capital and Employment and Investment Incentive (EII) Schemes which provide more tax relief in respect of business investment. The EII is being amended to raise company limits, increase the holding period by 1 year and include medium-sized companies in non-assisted areas and internationally traded financial services. The Seed Capital Scheme is being revised and made easier to access, with eligibility extended to individuals who have been unemployed up to 2 years. The new Scheme will be called “Start-Up Refunds for Entrepreneurs” (SURE).
I am confident that the supports in place for SMEs will help further develop this vital contributor to economic growth in Ireland.