Dáil Éireann Debate, Wednesday - 18 April 2018
31. Deputy Tom Neville asked the Minister for Business, Enterprise and Innovation her views on the way in which the local enterprise offices can be better utilised to support job creation in rural Ireland; and if she will make a statement on the matter. [16190/18]
Amharc ar fhreagraMy priority as Minister for Business, Enterprise and Innovation is to drive the creation of high-quality and sustainable jobs around all the regions and counties of Ireland. The Local Enterprise Offices (LEOs) play a critical role in supporting micro-enterprises in the start-up and expansion phases in every part of the country.
The LEOs can offer direct grant aid to micro-enterprises, that is those with ten employees or fewer, in the manufacturing and internationally traded services sector which, over time, have the potential to develop into strong export entities. The LEOs also offer ‘soft’ supports in the form of training and mentoring for anyone interested in starting or growing a business. In addition, the LEOs provide a ‘signposting’ service for the micro-enterprise and SME sector in relation to other relevant State supports, for example: Enterprise Ireland, Revenue; the Department of Social Protection; Microfinance Ireland; Trading Online Vouchers, LEADER, and Education & Training Boards (ETBs).
A net total of 3,760 new jobs were delivered in 2017 by start-ups and small businesses from across the country that have been supported by the Local Enterprise Offices (LEOs).
This brings the total number of new jobs created by LEO-backed companies nationwide to 15,000 since the LEOs were set up in 2014.
That is an increase of 10% on 2016 - and the fourth straight year of employment growth.
Growth was evident in each area showing that each county has the potential to grow its own jobs if the right promotion, encouragement and supports are put in place.
The Capital allocation made available and maintained in 2018 to the 31 LEOs is €22.5m, which is an increase from €18.5 from 2016. This is being used to fund LEO clients by way of financial assistance and a range of soft supports, for example for mentoring, training and innovation and for entrepreneurship initiatives such as Ireland’s Best Young Entrepreneur Competition, known as the IBYE competition.
The latest assessment of IBYE run by the LEOs for my Department indicate that 348 entrepreneurs won IBYE investment funding of between €3,000 and €50,000 from their Local Enterprise Offices and they now in turn have current annual sales of €124 million and employ 2,217 people.
In addition, the LEOs have also delivered specific Brexit initiatives for micro-enterprises, including:
- LEO Competitive Fund for Innovative Micro Enterprises: this new competitive initiative incentivised LEO clients to engage in innovation to develop New Product, Process or Markets.
- Technical Assistance Grants for Micro Export: Financial assistance to support market diversification in qualifying businesses to develop new market opportunities.
- The LEO’s developed a Lean4Micro offer for micro enterprise clients: Helping business clients adopt LEAN business practices to increase competitiveness.
A new client portfolio management model will be rolled out this year nationally to the LEOs by Enterprise Ireland, which will support portfolio performance and potential.
The LEOs also play a key role in the delivery nationally of four key objectives in the Action Plan for Rural Development including the ‘Options Plus’ programme for improving off-farm income generation of farmers and to link farm families with a variety of learning opportunities provided by other agencies including the ETBs, LDCs, third level institutions and the Department of Social Protection.
